….I tend to over trade and find it very hard to stop myself from hitting my daily stop. I just always feel like I can do better whether I am up on the day or down.
Here is part of the response:
I once met a yeoman from the USS Indianapolis he was in his late 80’s when I met him. If you are unfamiliar with The USS Indianapolis story. It delivered the parts for the nuclear bomb on Hiroshima and Nagasaki, because they did not want to attract attention no one knew where it was going and did not have an escort. After the ship dropped off the parts it was attacked and the sailors spent 3 days in the water until they were rescued. He was one of the 317 out of 1200 that survived.
After talking with him for some time I asked him how he survived and managed to live a successful life after going through so much. He answered because “I did not have a choice”.
Discipline and trading are similar. You do not have a choice if you want to survive. You just have to do it.
Bad discipline is like boiling a frog, they don’t realize it till it is too late. There are monetary and psychological gains from trading and they are often substituted and that is especially dangerous.
Going past your limit is a major warning sign. Meaning the opportunity to make money is more important than the reality of your results. This happens for one of two reasons. You are trading for entertainment or for psychological gains. I can tell you with certainty that is not the goal of anyone who wants to become a full time trader. So you have to ask yourself, what do you want most?
Positive results improves discipline. But without some discipline, sustained positive results are hard to come by. It gets easier but not without understanding what is most important.
Below is a quote that is in the basement of my High School football coaches house. It is easier said than done but it is something I always go back to when I am having discipline issues.
We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121 , email info @ traderhabits (dot) com or twitter, stocktwits, youtube and facebook. Subscribe to Traderhabits by email or to newsletter.