Self discipline is probably the greatest attribute a winning trader can possess.
I could offer you one trading rule/system and prove over time that it gives you consistent positive results.
One the other side of this, I could offer you a trading system with 6 or more rules and indicators that can still offer long term results.
The key difference in these systems is not necessarily the rules… it is how the trader manages the rules.
Is day trading 1 trade a day or multiple trades a day?
It is both of course. The point is how do you wish to operate within a trading day?
Do you want to be busy? Or find the right trade, take it on and then walk away for the day?
Should you use funds that you can safely afford to lose? Or do you trade with funds that you have an emotional attachment too?
Essential Pre-Trading Testing
The only true way that you will find this answer out is by trading with real funds.
And there is yet another caveat to this.
You see, many people selling systems say that you should only start trading with money that you can afford to lose.
While I can see the logic behind this mentality, I fail to see how this equates to someone that can afford to lose £100,000.
How does a multimillionaire start to trade, what size bank? With £2000 or 2 million?
Essentially, it seems that the less money you have to start trading the greater the probability you you have of making a better ROI.
Again, this view will be up for debate… but I can assure you that any trader that is trading with millions of $£€ has built up to that level from way smaller amounts.
Vince didn’t start out as a millionaire trader… he became one.
Any money that you trade with has to be respected and relevant.
If blowing £100 it nothing to you, then how about £500?
The fact is that… finding a level of loss that hurts you financially but you wont cost you your house if it all goes belly up.
If you are not emotionally attached to your trading bank in the sense that you care about what happens to it [your bank] then it’s likely you’re not going to be able to start a profitable trading career.
This is the first key to winning at trading. It is the first time you will be asked to be a disciplined trader… from then on you will be asked consistently.
The Disciplined Trader
It is the disciplined trader that will make money from the financial markets.
The ability to start trading with the correct sized bank, that is relevant to your current circumstances, takes honesty and discipline.
From then on in, it is time that will work its magic for you.
Therefore, you once again have to be disciplined.
You will either need to be disciplined enough to let your profits run, cut your losses or wait for the right opportunity to trade.
Winning traders are disciplined in all 3 of the above scenarios on any given trade.
Can You be Disciplined
If I told you that on average, you could make 6 points profit from every breakout on one minute candles; but pointed out it is better to set a points target of 6 points a day and then leave it and take the rest of the day off, could you do it?
Could you leave all those other potential 6 point trades on the table for the rest of the day?
If you are trading just one trade a day, could you just leave it there?
If I told you to back every one-minute candle within a certain criterion until you have made 2 points profit for the day… could you be disciplined enough to walk away after?
I’m talking the shorter term trading here as you can see. The reason for this is because I have talked about discipline with longer term trading many times before.
And since my trading system will be to accommodate day traders, I thought it an idea to point out some considerations before you even think about investing in financial trading.
Any fool can start trading, but is the disciplined trader that will go on to reap the rewards and profits that trading can offer.
Discipline should be your greatest focus when it comes to trading. Become disciplined and most else will fall into place.
With self-discipline most anything is possible – Theodore Roosevelt