Trading Discipline: 4 Step Plan to Master It

15 Price Action Patterns Insiders are Using If a hedge fund managers were using 15 specific price action patterns would you want to know?

Trading Discipline is allusive to many traders but not you, if you apply the tips I teach you in this article. The most important skill in trading is to develop trading discipline today, I am going to help you a trading discipline master. By the end of this article you will know exactly what you need to do to become a master at discipline.

The best way to develop solid discipline is to make sure you have a big picture mindset regarding your trading.

Trading Discipline falls under the category of Market Psychology which is critical to trading success.

Learn Trading Disciplineย 

In order to break the barrier to become successful at trading, there is a set of skills that each individual trader must develop. With the right foundation of principles, anyone can become a successful trader.

Learning trading discipline requires a combination of self-awareness, education, and practice. Start by setting realistic goals, developing a trading plan, and identifying your personal weaknesses and biases. Continuously monitor your performance, analyze your trades, and make adjustments to your approach as needed. Finally, seek out resources such as my YouTube channel. Sign up to my email list and consider joining our group coaching program.

What is Trading Discipline?

Trading discipline refers to the ability of traders to adhere to a set of rules and principles consistently. It involves controlling emotions, such as fear and greed, and following a well-defined trading plan that includes risk management strategies. Trading discipline is crucial for successful trading because it helps traders to avoid making impulsive decisions, which often lead to losses. By sticking to a plan and following a set of rules, traders can minimize risks and increase the likelihood of making profitable trades. Ultimately, trading discipline is the foundation of a successful trading career, and it separates successful traders from those who consistently lose money in the markets.

Creating a Foundation To build your Trading Discipline:

We will begin by explaining the most important principle, which lays the foundationย for creating a broader trading strategy. Only by understanding the first law will the remaining laws begin to make sense. ย When you build a house where do you start building?ย  You donโ€™t start at the roof because if you did you would have nothing to build on. A house is built step by step and each step builds upon the other in order to get the completed structure, your house.

Trading works in the exact same way. With a solid foundation of trading fundamentals, you will be able to achieve your long-term trading objectives.

So what is this skill, you ask?

Trading Discipline:

Discipline is the foundation of all functional trading strategies. Without discipline, you will be harmed by the risks of active trading. These risks include fear, greed, and missed opportunity. Only by holding yourself accountable and remaining disciplined at all times will you be able to achieve your trading goals.

If you focus on your trading strategy before learning discipline, the details of your strategy will not really matter. Discipline is what makes successful trading strategies possible. Discipline is why technical indicators, risk management techniques, and trading principles pay off in the end.

It is very easy for traders to feel overwhelmed. Once losses begin to pile up, it can be very tempting to take early exits. Once gains accumulate, it can be very tempting to press your luck. Disciplined traders are not distracted by any particular price movement. They realize that, when applied correctly, their trading strategies produce netย gains over time.

As the foundation of trading, discipline is what will allow you to put your trading knowledge to good use.

3 Steps to Becoming a Forex Trading Discipline Master:

Becoming a successful trader will require time and practice. However, there are still quite a few things you can do to improve your level of discipline. When designing an effective trading strategy, keep the following things in mind:

Why is Trading Discipline so Hard?

Trading Discipline is hard because of something I call the shiny object syndrome.

Itโ€™s a dangerous trap that can derail your trading success before you even get started.

So, what is shiny object syndrome?

Itโ€™s the tendency to be distracted by new and exciting trading strategies, systems, or indicators, rather than focusing on the tried-and-true methods that have been proven to work over time.

I want to compare your trading to a small garden.

Itโ€™s your garden but it is an ugly plot of land.

The ground is hard it is dry and full of thorns and thistles.

This is a plot of ground that is yielding nothing and is costing time and money to maintain.

However, there is real potential in this garden. If you are willing to do the work, it will yield a harvest that will feed you and your family forever.

Question???ย 

If you knew that the garden would produce a massive harvest would you be willing to put in the work?

I think most of you would say yes.

But instead of putting in the work to clear out the weeds and prepare the soil, they get distracted by other gardens that look more attractive or promising.

Trading Discipline

The problem with shiny object syndrome is that it can lead you down a never-ending rabbit hole of constantly trying new things, without ever giving yourself a chance to succeed with what you already have.

But the truth is, if you put in the time and effort to develop a solid trading plan, backtest it, and stick with it, you are much more likely to see success than if you keep chasing after the next shiny object.

So, my advice to you is this: stay focused on your own trading plan, and donโ€™t get sidetracked by the latest trends or fads.

Because you have a garden in front of you donโ€™t miss the massive fruit that will come from it. Remember be faithful with the little things and big things will come faster than you think.

4 Steps to build trading discipline

Remember that success in trading is a journey, and it requires patience, discipline, and hard work.

1. Have a clear set of trading discipline rules to followโ€” If you donโ€™t have guidelines how will you be able to follow them? You canโ€™t. So, get a set of rules and start following them.

2. Start with something easy and grow your discipline โ€” The best trading strategy for you is one you fully understand. Traders that are overwhelmed, nervous or confused are likely to lose their sense of discipline. Once you start small and begin to have success following your rules, you will gain confidence. Not sure where to start? Find the best trading strategies for your needs here.

3. Make Your Goal Following Your Rulesโ€“Traders want to make money! However, we need our foundation first. If you canโ€™t build a foundation then you will never ever make money trading.ย  So until you master following your rules, make it your goal to follow the rules, then from there when that is established then you begin to tweak elements of your strategy which will launch you into profitability. Here you can learn on How to fade the momentum in Forex Trading.

4. Have someone else hold you accountableโ€“ I have seen massive success in my small accountability groups.ย  It is amazing how much a difference it makes when have a person to speak with. If your interested in joining one of our groups let me know in the comments below.

Making trading rules is surprisingly easy. Begin by developing a consistent trading strategy. Trading at similar times of the day and holding positions of similar lengths will make your moves much more predictable. You should also only use asset classes and trading platforms you fully understand. There are still plenty of opportunities for profit within your comfort zone.

Ask yourself the following questions:

  • What technical indicators should you use?
  • Are you a risk-tolerant trader?
  • Which assets do you hope to trade?
  • What are your current trading parameters?
  • Are you comfortable issuing stop-loss orders?

It will help to write each of your rules down. This will make each rule easier to remember. Eventually, following these rules will be instinctual. Regardless of your trading preferences, discipline will remain important.

Are you a Trading Discipline Disaster?

If youโ€™re reading this right now and you are not currently a master of self-discipline trading, take a step back and think about how this is impacting your trading and your life. I would like you to reach out to me via the comment section and tell me which changes you plan to make.ย  Share this post with your trading friends. The road to success all begins with discipline.

Conclusion on Trading Discipline

Trading Discipline is the final key most traders need to become successful. This key can be found by doing the work required and learning important steps to master discipline such as having a plan, setting goals, and having someone to hold yourself accountable.ย 

Itโ€™s not easy but if you do the work you can do this!

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Please leave a comment below if you have any questions about The Trading Discipline!

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Trading Discipline FAQs:

Which is better disciplined trader vs trading in the zone?

โ€œDisciplined Traderโ€ emphasizes the importance of trading rules and strategies, while โ€œTrading in the Zoneโ€ focuses on the psychological mindset for successful trading. Both books are highly recommended, and which one is better depends on the traderโ€™s preferences and needs. I recommend you read both of them.

How to develop discipline in trading?

To develop discipline in trading, start by creating a well-defined trading plan that outlines your strategy, risk management, and trade execution rules. Stick to your plan and avoid making impulsive decisions based on emotions or market noise. Lastly, practice self-awareness and review your trades regularly to identify areas where you can improve and refine your approach.

Why is trading discipline so hard to master?

Trading discipline can be difficult because it requires a high level of self-awareness and self-control, as well as the ability to manage emotions such as fear and greed. In addition, the fast-paced and unpredictable nature of the markets can make it challenging to stick to a set of trading rules and strategies. Finally, traders may struggle with discipline due to a lack of confidence or a fear of missing out on potential profits.

What are some Trading Discipline Strategies I can implement?

Some trading discipline strategies you can implement include setting clear goals and objectives, developing a well-defined trading plan with specific entry and exit points, and using stop-loss orders to minimize losses. Additionally, itโ€™s important to maintain a consistent approach to risk management and avoid emotional decision-making.

What is the best method of having discipline in trading forex?

The best method of having discipline in trading forex is to manage risk effectively by using stop-loss orders and position sizing based on your account size. It is also important to have a thorough understanding of the volatility of the forex market and the potential for large price movements, which can help you avoid impulsive trading decisions. Finally, it can be helpful to develop a consistent trading plan and stick to it, even in the face of market fluctuations.

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15 Price Action Patterns Insiders are Using If a hedge fund managers were using 15 specific price action patterns would you want to know?

15 Comments

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  1. I have just started trading and will need a lot of help and tips, so I will definitely be following your posts. Anyone who is new to anything knows to learn from those who have already made a name for themselves is the best education.

  2. I started trading in 2012 by chance and I quickly started to develop the โ€œclick button crazeโ€ syndrome. Iโ€™ve not had any success since, despite educating myself on what it takes to succeed at trading. Well, Iโ€™ve myself summarized the reason for my failure as โ€œMy lack of self discipline.โ€ Iโ€™ve written trading plan which includes number of trades to take and all, but Iโ€™ve never been able to follow it for even one single day. Iโ€™ll tell myself Iโ€™ll follow it this time, deposit funds into my account and blow it within three days if Iโ€™m lucky. Because, I simply over trade. Iโ€™m getting the same result because I keep on doing the same thing, but changing has been so so difficult for me and Iโ€™m feeling despair now. So how could I effective change from over trading to just about enough?

    • You story is one that I have heard many times. The most important is to work hard and creating good trading habits.
      Develop a Plan and make your goal to stick with the plan.

  3. How can One
    discipline himself in day trading?. Or let me put it that way WHAT IS Discipline
    IN DAY TRADING? Especially for new traders.

  4. Itโ€™s a good article. I think psychology is most important. We have a great strategy with great rules but if we donโ€™t have right set of mind and no control over emotions, itโ€™s difficult to become a successful trader .
    Hope you as a veteran trader throw light in this issue as well .

  5. Just 1 question is what i want to ask. Am a day trader as i have the ability to watch my trades without shaking. Is there any need to hold my trade exceed the particular time length of my day activities in the market? Especially when am coming back the next day to take another trades. and the trade is in profit already or almost hit my profit target. I can also swing. But as a day trader, I think it is good to close oneโ€™s profit especially when there is no conviction that the trend will continue for swing. Help me put more lights on this. thank you

  6. How chart alerts will contribute to our success as trading strategy works during anytime and discipline alone will not trigger the entry/exit. Any game plan?

  7. This web site is really a walk-through for all of the info you wanted about this and didnโ€™t know who to ask. Glimpse here, and youโ€™ll definitely discover it.

  8. I think this web site holds some real excellent information for everyone :D. โ€œBelieve those who are seeking the truth doubt those who find it.โ€ by Andre Gide.

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