No matter what you trade stocks, forex, futures, options, commodities, ETFs, bonds or whatever, you need trading discipline otherwise you will always be making losing trades. Many traders don't take discipline seriously. It was Richard Dennis, who had said to his turtles that no matter how volatile the market, it is your trading discipline in following the rules that will determine in the end how many winners you can make.
Richard Dennis had started with only $400 and ended up making more than $200 million trading commodities. Now, commodities are considered to be one of most risky and volatile markets. How did he do it? Simple, discipline. Recently, Norman Hallet, internet's top trading coach and considered to be the godfather of trading discipline conducted a survey online in which more than 1,700 traders took part.
The 3 most critical trading discipline issues that were expressed by most of the traders in that survey were:
1) Giving back all the profit to the market in an undisiplined move or what you call making a blowout trade,
2) Hesitation in pulling the trigger when the signals are saying it and the trading plan is saying it.
3) Trouble in taking losses.
Now, how do you stop making one blowout trade after another? How to pull the trigger confidently when it is time to do so? How to cut your losses and exit when it is the right thing to do? Many traders never figure it out and end up frustrated. Whatever trading system you use, it is the discipline in following rules that will in the end determine how many consistent winners you can make overtime just as Richard Dennis had said. By improving your trading discipline, you can turn yourself into a winning trader!
Source : ezinearticles
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