Author: Shanda Biggs
I have learnt over the last number of years trading that there are a handful of things that make traders successful. I found a quote that I would like to share with you that outlines one of the most important, if not the most important thing that allows traders to sustain success in the markets.
“Suffer the pain of discipline, or suffer the pain of regret”
This quote is simple and to the point. Practicing discipline on a daily basis is so important if you are a trader. It simply means that if you are not disciplined, you will not be a successful trader.
It is so important that we do not get caught up in the hussle and bussle of the market. The market is a fast paced and exciting environment to be in. If you are not careful, the excitement can consume you to the point where you experience massive highs in your emotions while trading as well as lows. It is our job as traders to keep our emotional spectrum in check while being involved in the markets. We want the pendulum to be in complete balance. This allows us to look at the markets objectively and not through the lenses of our emotions.
Have you ever wondered what truly makes great traders successful? It has everything to do with the above quote. Great traders have incredible discipline. They have the discipline to take great trading setups but also to stay out of bad ones.
They understand that sometimes the most profitable position is not being in a position at all. Yet they also know when to take action. They become masters and students of the game.
Before you can be a disciplined trader you first need a vision. Why did you start trading in the first place? What drew you to the markets? Do you want to create freedom in your life? Develop and learn a new skill? Whatever the reason is. Be sure that you are clear. Nothing stops progress like a cloudy vision. When you have a vision and see where you are going and what you need to do to get there is when you take the action steps necessary to walk along the path.
Create a vision for your trading and for your life and see where you are going and what you need to do to get there. Then you will take the necessary action steps to bring the goal closer to you.
How do you develop a clear plan to get to your trading goals?
One of the best goals I have set for myself and I recommend that you set as well is… making it a goal to follow the rules of your trading plan everyday. If you can do this one simple thing I guarantee you will see success in the markets. Creating the habit of following your trading plan increases your discipline.
One tool in particular that has helped many traders stay disciplined in the market is the use of algorithmic trading robots. These bots help keep the trader on track by only executing trades that are according to the trading plan.
Where many traders fall short is they do not have the discipline to follow their plans. Even a small deviation in the plan can be detrimental to a trader’s long-term success. Why?
Making small changes to your plan on the fly is trading based on your current emotions at the time. Someone who is disciplined would trade their plan no matter what. A trader making emotional decisions changes the plan from trade to trade and wonders why they are not improving.
Trading with robots helps you to not get caught in the heat of the market. It helps reduce emotional trading. You do not have to question your setup, you just execute because the bot tells you that there is a great setup available. Then overtime by following your plan, your edge presents itself.
Not following a set routine is why most traders are not improving. When you make changes to your trading plan on the fly you are not basing your decisions on concrete rules and data. If you have the data and back testing proof to backup your decisions, then you can make changes to your trading plan. But until then, stick with the rules you have set out for yourself. Only making real changes once you have the proof that the change will benefit you in the long run.
I have learned that keeping your trading plan concise and to the point is most beneficial. By having a focused trading plan you know exactly how to execute each and every position that you take. When your trading plan is focused, it is easier to be disciplined. You know what you are looking for and can execute accordingly.
A trader can have a HUGE advantage by using robots to aid in their trading. Many traders fail due to their poor psychology and mindset. If trading with the assistance of a robot could help you develop the discipline to be a successful trader than it would be a no brainer. That is exactly what robot trading will help you with. Being more disciplined! Allow trading with robots to help you follow your trading strategy!