Trading is a profession that demands a MILITARY level of discipline. Not only do you have to stick to a set of trading rules, you also have to be on the line when market surprises you with wild move the one we saw today on India -Chinese Tension.
Self-discipline gets you consistency, and consistency makes success achievable within an acceptable amount of time.Discipline management is one of the hardest things to master. At the same time, it is the most important element of successful trading.
Self-discipline involves the development of a mental framework which enables you to stay motivated and focused amidst conflicts and mistakes.
Self-discipline is NOT a trait that you are born with. It’s not a talent exclusive to an elite few either. Anyone can practice self-discipline, but it ain’t as easy as it sounds.
Developing discipline is difficult, but it is a necessary and important trait for any trader whose goal is to someday become consistently profitable.
Most of new trade I Interact with during my 1-1 coaching , take a trade, when in Profit Exit Early and when in Loss wait till the loss become unmanageable and exit .
Here are tips to help you develop self-discipline in trading:
1. Have a Trading Goal
You must have a target or a goal in mind. Without any goal in place, you are Gambling. Goal can be to make 1000 per day or if loss is more than 1000 stop trading. You can decide Goal based on your Trading Capital.Don’t get too carried away in setting your goals which are unrealistic in nature.
Eg 1% gain each week or maintaining a 50% win rate.
Having a specific and tangible goal is the first step towards developing self-discipline, as it will give you the motivation to get through trading each day.
There will be times when you will feel disheartened, but having a GOAL could keep you from quitting.
2. Have a Trading Journal
Another good technique to practice self-discipline is to keep a detailed trading journal. I am a strong advocate of having one because it can provide great insight into your progress towards attaining your goal. It can also help you stay motivated and track your progress and lets you know whether you are improving or not.
3. Stick to Same Trading Method
Don’t change it! If you have a proven methodology but it doesn’t seem to be working in a given trading day , don’t go leave that and move to some other strategy. Trading is about Mastering 1 strategy not Skipping to Multiple one if few days goes wrong.
Remember, the Holy Grail of trading is Position Size and Money Management.
4. Focus on Your Diet and Sleeping Habit
If you eat healthily and regularly, you will maintain your blood sugar at the appropriate level. If your blood sugar level drops, your self-regulation systems work less efficiently. This can lead to you becoming more distracted and giving in to temptations. You will struggle to regulate your behavior. We also need to make sure we are drinking plenty of water throughout the day. Studies have shown that even when you are marginally dehydrated, your brain function can decrease massively.Physical Exercise and Breathing exercise will help you to Build on your Self Disicipline