Patience and experience, but what about discipline?

Trends, support and resistance lines, Fibonacci levels, formation and bar charts. Indicators and oscillators, etc .. In short, technical analysis. FRS, The Bank of England, the ECB, consumer price inflation, production inflation, unemployment, retail sales, export, import, debts of PIGS (Portugal, Italy, Greece, Spain), etc. In general, fundamental data. Oil price, the value of the index DJIA, S & P500, DAX30, the situation in the DX – dollar. indexes, etc. Or correlation.
Do you know all this? But how well? So what’s the catch? You do not have enough patience? You do not have the discipline? Problem is likely, in psychology, and not in the system.

In various textbooks and manuals, on Web sites there are many tips on how to trade successfully. Many of them are intelligent and helpful. But something is missing. So what?

They usually do not write about very important qualities of every successful trader. About patience, foresight, ability to learn and, most importantly about discipline.
It does not focus on the fact that the trader is actually a pure individualist. This certainly applies to the establishment of the trading system. Since each trader must create his own trading system. Of course he uses and the experience of others, but it is the original trading system. At some point, it will be similar to others, but still it is the original system. Usually nobody writes that a good trading system can not be created without a lot of experience gained from the long-term monitoring and analysis of the market. In short, everyone should long enough and patiently “sit” his trading system before the monitor.

For somebody it takes a year or two. For other even longer. If someone says that in six months he is ready to trade on a real account, I do not believe him.
I have been in this business for many years and constantly being improved. Of course now only in the details, but all the same time. Without a lot of patience and experience, not learning from own mistakes, no one will create a good trading system. And one more thing. Intense trading activity will change your life (not only in finances).
Are you ready for this ?!

The biggest problem of trading is perhaps the discipline. They say about discipline not so often. But this is the most important thing. Do you have experience and proven trading system? Do you have the concept of the market? Do you know how it behaves? Are you really good in technical analysis and understand the fundamental data? All this does not make you a good trader. You must have the discipline. In any situation your emotions have to be replaced by discipline. This is one of the main reasons why you are successful on demo account, but not on real money.

You should have been clear from the analysis of unprofitable or prematurely closed positions, that if you follow the plan, in most cases it would be good.

Or, in the case of losing position, the loss might be much less. After such unsuccessful transactions everyone asks himself: “What is that? What did I do wrong? After all, my plan was all right. The answer is the lack of discipline. In using the trading system, in management of the transaction or in closing of unprofitable position, you did not have enough discipline. Common situation. You have a plan for this position. Determine the position and in a minute you are in the market. And a minute later, the market turns against you and you are losing. And that’s before you dilemma akin to Hamlet, close or not to close, that is the question.

More relevant questions were: whether the market is showing signals of reversal?
Can we talk about reversal by analysis of these attributes and fundamental data?

The answer to these questions:

– If Yes! – Immediately close the position. Because the situation has changed in comparison with the plan. Or set the delayed position in the opposite direction, and close the current loss-making one.

– If NO! Check your stop-loss and stay on the market, in accordance with the original plan. The same applies to the position with a small profit. For example, close a part of the position and move the stop – loss order to protect low income if it is safe.

These and other tactical points should be part of your trading system. They are experienced in such situations, and they do work! Do you know about them? So why you do not use them?!

I heard about the idea: “How you behave when driving, as you behave in trading.” I think this is truth. So the next
time when you plan a new deal and open position, try to switch from emotions to enforce discipline. With each deal realized such way, the level of your discipline will grow. Increase the level of discipline in everyday life, and you can be sure that this reflect on your trading only positively.

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