Trading Discipline – The Art of Success

Trading Discipline

One of the hardest challenges that faces any trader is the art of staying disciplined.


This seemingly simple rule can be one of the most confusing and complex trait a winning trader will need to learn.


You see, trading discipline can be somewhat contradictory.


You may need the trading discipline to do nothing most of the time. Or the trading discipline to only do something once every day or any set number of times in a day or month.


If actually buying stock in a company, do you have the discipline to hold on to the stock for years no questions asked? Or drop it instantly and accept a loss if it starts losing money?


All the above scenarios are quite realistic, they are also all quite different… and all require cast iron discipline.


It makes little difference what style of trader you are or are trying to become; the winning traders all have the same thing in common… discipline.


I have seen many traders move from one type of trading system to another and another without learning the fundamentals of how to trade profitably at any time during their trading experience.


If I could give any advice to new traders, it is without a doubt to learn to do the same thing that works over and over again and compound profits as you go.


Trading Discipline  

Every trading system will have a set of rules that are designed to give you an edge in selecting a winning trade.

Once a trade is selected and opened, then the rest of the profitability is done by waiting, and compounding the results, not by using the system.


The system that you are using to give you an edge actually has very little to do with your wealth after that initial use [selecting and opening a trade].


So therefore, time and discipline are actually greater components to winning at trading than actually finding a winning trading system.


Vince Stanzione


Vince Stanzione is far wealthier than most of us, but he is not far more intelligent or talented.


The saying “nothing is more common than unsuccessful men with talent”. therefore, holds some truth.


There are obviously many more talented men than Vince, but certainly not richer.


So how did Vince Stanzione manage to make so much more money than far more intelligent men? Vince just found something that worked most of the time he used it and done it over and over again. He then compounded his profits over time. It is as beautiful as it is simple.


All that Vince had to do after finding a formula was stay disciplined in its use.


Most People Quit to Soon.


trading systemMost people that start a business of any description quit before they are ahead. They don’t understand that profit and loss doesn’t happen in straight lines up or down.


When I first started trying to make money on ebay, I started out with £100 worth of stock. I forget how many units I actually had but my product was teeth whitening kits. I didn’t start it with enough money to get a big discount and I was actually losing money in the beginning.

But even though this may have looked grim to others, I kept going. I persisted because I could see the possibilities.


“Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent”.

Calvin Coolidge


Roll on 18 months and that £100 was over £30,000 turnover. The secret to that income? I didn’t quit in the beginning, even though it wasn’t profitable.


When I did start to make the smallest of profits, I then reinvested those profits and bought more stock. Stock that I could now buy cheaper.


Nothing remotely complex to the results, and I’m know more intelligent than the next person.


It is this up and down, ebb and flow, in any business but especially trading that tends to destroy traders crossing the bridge into profit.


These videos by Peter Webb from Bet Angel explain the concept brilliantly.

So in conclusion, don’t quit to soon, compound your profits over time and the slightest of edge can turn into something spectacular.