Developing trading discipline
Developing trading discipline
In order to develop trading proficiency a trader should be able to assess markets, make quick and informed decisions as well as use technical analysis tools. Additionally, any trader must be able to concentrate and focus his attention on the trade without being distracted. That said, trading can be psychologically exhausting. This is why the most important skill is discipline. Developed discipline will help improve the overall approach to trading.
Step # 1 — explore your weaknesses
The first step to self-improvement is to find out your weak points in order to start developing and working on them. Give priority to the hardest aspects. From a disciplinary perspective, the most common distractions or obstructions are emotions. Emotions drive many of our decisions, especially in trading.
Many traders admit that they often make hasty decisions due to their emotional state. Traders are often influenced by greed, fear, excitement and frustration. As a result: premature closing of deals, opening at the wrong time, wrong choice of assets. Attention to your own emotions during trading and, perhaps, written notes about this will help to recognize them in advance and take effective measures.
Another weakness that traders often report is the lack of a routine. Not knowing where to start or what to do is okay if you are working on a situation. Using money management and keeping a trader’s diary can eliminate the uncertainty and chaos during trading and help develop trading discipline.
Step # 2 — stick to the plan
Once you understand what is holding back discipline and what needs to be changed, come up with a new routine and be sure to stick to it, no matter the circumstances. Try to be mindful of the matter and think about what you are doing to continually develop discipline.
Discipline is a habit, and each habit takes time to develop and become entrenched in your practice. Eliminate bad habits, try to track your progress and evaluate it. The most important thing is tracking results. This helps to spot changes and motivates you to keep working.
Step # 3 — cheer up and encourage yourself
Remember to reward yourself for doing good work. It can be simple verbal praise, but the main thing is to constantly stimulate yourself.
But even if it doesn’t work the first time, don’t give up. It only says that you are human. Discipline is difficult, and everyone can step back from it from time to time. If you find the advice isn’t working, go back to the first point and think about why your routine isn’t working. It is important that you take the time to identify your mistakes and work on them in the future.
