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Discipline

Taking On Discipline In StagesOnce you have decided that you need discipline in your trading, knowing where to start can be difficult and overwhelming. There are many pieces to a trading plan, and it's easy to feel overwhelmed. You can break the task into manageable sections and master one discipline at a time, or focus on the the discipline you need. This approach makes the process more manageable and ensures that each aspect of your trading strategy is given the attention it deserves. Trading Plan Components: Each of these sections should have objective rules so there isn't any escape room. Method Rules Entry Rules Stop Rules trailing Stop Rules Exit Rules Journaling Trade Plan for TME, COIN Shane
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NYSE:TMEEducation
by ShaneBlankenship
6
Delusions of Grandeur - Breaking Your Trading ModelIn this video I would like to talk about a mistake many beginners as well as intermediate traders make, which is having a potentially profitable trading model, and pushing it to the point it stops working. I will discuss WHY it happens, WHY it never works, and WHY you should avoid this blunder. Your trading model is the strategy that you use to trade with. It can include how you determine your entries, stoplosses, and targets, as well as how you manage risk. The only way to know if a trading model works, and how well it works if it even does at all, is through backtesting and forwardtesting. The more data you collect, the more insight into the model you will have. The main thing I want you to keep in mind is that a trading model’s efficacy relies on collected data, and this data must be consistent. It’s the same as any other industry that does research on their market or products. So, why do so many traders push a model until it stops yielding them profit? I would say the first reason is impatience. Humans are impatient, especially nowadays in this of social media and technology. Some traders won’t spend the time doing all the necessary testing required. They want to start making money as quick as possible, but little do they know they end up losing their account as quick as possible. Secondly, it takes time for your setups to appear in the market. People have this naturally preconceived notion that you need to be doing something in order to be working and making money. This is the complete opposite in trading, which goes against our programming. So what ends up happening is traders being less stringent with their model’s criteria just so they can trade more often. Next is greed. Generally speaking, the safest way to survive as a trader in the long run is through compound interest. Risking small, and letting the math do the work. But that’s not very sexy. Many traders go against their logical risk rules in order to potentially make more money, or more likely, lose more money, or all of it. Boredom is a factor as well. Seeking excitement from trading is a one-way ticket to blowing your account. You’ll never make it as a trader if you think like that. All good systems are rarely thrilling. It is perfectly fine to be in love with trading, but it should not get your heart racing. It all comes down to being disciplined. Doing the work, putting in the time, and following the trading model you have either adopted or created yourself. It absolutely doesn’t matter if you have losing trades. It absolutely doesn’t matter if your trade setup appears only once or twice a month. Those are not hindering you from becoming very wealthy in due time. But, running around jumping from strategy to strategy, not sticking to a model’s rules, those things will ensure that you never make it as a trader. It is as simple as that. I know, it is not easy for many of you. It wasn’t easy for me as well. I am naturally face-paced. So, one piece of advice I have is cultivate organized baby steps. What does that mean? Clearly plan what you want to achieve, and then start with frequent tiny goals that you have no reason to not accomplish. For example, you want to collect data for 500 backtested trades. Start with the goal of backtesting 1 trade per day for a week. The important part here is not only making sure you do that 1 trade backtest, but making sure you ONLY do 1. If you are in the “mood” to do more, DON’T. What would it demonstrate if your decisions are based on your mood? What will happen when you are in the mood to do none? If you say 1 trade, stick to 1 trade. After a week, you can stick with 1 or scale up to 2 backtested trades per day for a week if you are ready, or perhaps a month, it’s up to you. This is just an example. You can apply this method to anything. Basically, you want to condition yourself to be consistent and disciplined. You want to show yourself that YOU are the boss of your life. YOU consciously decide what happens, not your emotions. The only way to do that is to grow that muscle bit by bit. Don’t let anyone tell you otherwise. - R2F
FX:XAUUSD
by Road_2_Funded
A Good Practice Destroys ItselfWe take on a discipline to do something we don't naturally do or want to do. We set some rules that will be uncomfortable and ride out the restless energy. Keep in mind that a good practice destroys itself, the whole point of a discipline is to get to the point where we don't need the discipline anymore. That is called transformation and it takes time. By being consistent with discipline over time, the reactionary impulses begin to die down and you will find yourself more balanced. This is where true intuition can begin to show up. At some point, you might see where one of your strict rules doesn't make sense for a trade and if you come from a balanced mindset, you can make a commonsense decision about it. This kind of thing is testable if you have an objective method. You test your intuitive results against the objective method results. This is all a one step forward, 2 step back kind of thing and takes time to develop. If you're in a rush, this tells you you're not balanced and need to keep the steady discipline. Shane
NYSE:PARREducation
by ShaneBlankenship
Trade Planning: Learning Through Consistency and DisciplineIm going to do a series of posts that are all about trade planning and learning about consistency and discipline through a practice. In this exercise, I will be consistently planning, executing what I planned, and documenting 30 trades. A trade plan consists of a method, trade management, position sizing, documentation and review. A trade plan should state ahead of time, exactly where to enter, where to place stop, how the trade is managed, where to exit, and position sizing. This kind of accountability and responsibility offers a contrast to the our normal ineffective emotional impulses that we usually make our trade decisions from so that we can make a choice. I will talk more about each part of the trading plan future posts. This exercise is not about the method, a setup, picking the right stocks, being right, winning, loosing, or predicting markets. It doesn't matter if all the trades are losses. The purpose is to learn about consistency and discipline through your own personal insight. Its through discipline and consistency that we begin to re-wire old ineffective habits and develop an effective mindset for trading markets. Doing something consistently also offers a bassline to compare and truly learn. There is often resistance to this kind of responsibility. If you want to take up the guidelines of the practice, just step into it as much as your ready for and make it your own. This is not meant for you to follow my trades or worry about my method or setup. Its not important and besides, my setups lose most of the time anyways. Use your own method, there are plenty out there and work on making it as simple and objective as possible. I also suggest you start out sim trading this or using very small size.
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NASDAQ:ADBEEducation
by ShaneBlankenship
17
LET'S GET REAL: Fear of Losing! Hey Traders, Most traders battle it. I myself had to progress past this in order to achieve consistent returns trading the markets. It is seen as one of the hardest challenges to pass in terms of emotional discipline. Understanding yourself better so you can make decisions in a calm, composed and consistent manner is crucial to success. Today I wanted to touch on that. I wanted to talk about the fear of losing what spurred from my fear of losing, how I progressed through it (it still creeps in from time to time). Hopefully you can take from my story and how it improved your trading or how it can help you progress past that fear of losing. If anyone has any questions or maybe some other stories in the way they progressed through a fear of losing or a fear of being a failure, please feel free to share in the comments and I'll get back to you as soon as possible. Have a fantastic trading week!
Education
by the5erstrading
6
The only way to profit from trading is discipline. Wrong Wrong !We all come to trading for freedom, financial freedom, free of work, trade whenever and wherever we want to... Now, everyone told you that you must be disciplined in order to be profitable from trading. Can you do it? Instead of discipline, you should be responsible... Yes, Responsibilities will change your trading. You are responsible for protecting your account, working on time, your health and etc... Please watch it and like and share if you think this video is useful. Thank you for watching!
Education
by FxFran