You have to be a disciplined trader. This is one of the nuggets of trading wisdom we hear constantly, and for good reason–it’s true. Without discipline, we will make many mistakes in the highly competitive market environment. But it’s not as simple as saying to yourself “be disciplined” and watching all your trading problems melt away. Discipline, for many traders, is a battle to be fought over many years and a goal that is not achieved with some maturity as a trader. Here are five things you can start doing, today and right now, that will move you a little further along the path to being a disciplined market participant.
- Understand, intellectually, the reasons why discipline is important
- Have a plan
- Evaluate your performance regularly
- Become aware of your “tells” and behavioral triggers
- Learn to break the cycle
Original published on Adam H Grimes blog.