Everybody wants to be successful. But the question is, is this easy to achieve? The answer is, yes and no! Also, you must know, being successful in trading equals being successful in life. Everyone in this lifetime can achieve success . However, it takes determination and consistency. You need to have some good traits and follow certain rules.
All the topics that I am going to discuss are very simple.
The question is, are you willing to abide by them? If yes, then give yourself a couple of months or so, and watch your life unfold.
Let’s be honest here, self-discipline is not a trait you are born with! Neither is it a virtue that is exclusive to a very few people.
Self-discipline means self-control. It is doing what you really want to do, rather than being tossed around by your feelings like a leaf in the wind. With self-discipline, you take charge of yourself and your life.
Having said that, I will not deny the fact that it can become real monotonous at times.
Initially, when you start trading you will be super excited and pumped, but you will suffer a few losses eventually. At this time, you might even be discouraged to continue trading.
This is where self-discipline comes into the picture. A very important trait for any trader whose goal is to become consistently profitable.
As a disciplined trader, we need to understand that losses are part of the game and are unavoidable. What matters is how much we lose on a losing trade. Do we lose 1 % of our capital or 10 % ?
Another brilliant way to practice self-discipline is to keep a trade journal.
If you have a winning trade, great! write it down.
You had a losing trade, still, write it down and mention where you went wrong!
A trade journal is going to help you right your wrongs. And later, when you’re accustomed to this, you will only take a trade when you have a setup.
You will not be comfortable taking every other trade; even when it’s tempting and giving you a huge reward. Because you know, overtrading is going to disappoint you.
Have you ever looked hard at your screens trying hard, even when you don’t find any trade setups?
Ever forced yourself to find a setup and executed a trade just because you just weren't patient enough?
All these actions eventually lead to losing money.
WHY? Because you lack Patience.
Anger, stress, frustration is “THE” perfect recipe to ruin a trader’s portfolio.
To master any art , especially trading, you need to be patient and make constant efforts.
To achieve your dream of becoming a profitable trader, you must have the zeal to overcome challenges.
And the power to overcome all these challenges is to have patience!
Consistency is the key to success. I’m sure you’ve heard of this adage before?
Whenever you see a trade setup, you need to follow the same course of action every time. Once you’ve done your back testing and forward testing on a particular strategy you will be confident about that strategy.
Now, your only job as a trader is to execute the system exactly as you have tested and designed it.
All you need to do is repeat the same process every time you find a setup. To be able to consistently follow the system every time, one trade after another, be it a winning trade or losing trade, is a sure-fire way of achieving success and consistent results.
CONSISTENT ANALYSIS + CONSISTENT EXECUTION = CONSISTENT RESULTS!
Let’s get into the literal meaning of Confidence. “The feeling or belief that one can have faith in or rely on something.”
When it comes to trading you are relying on your trading strategy. Getting into trading is not a child’s play. Trading involves immeasurable risk if done in a confused state of mind.
Understanding the risk and getting involved in a trade requires confidence. The only way you will feel confident about your system is by knowing your system is profitable.
Now this can be achieved only when you have information whether your system is tested, verified and can be repeated over and over again.
On the contrary, being excessively confident of a system and expecting best results, which is commonly known as overconfidence, is even more dangerous, as it makes you to trade with heavy volume and keep averaging in losses and ultimately lose all the money.
So this has to be balanced! And moreover, you need to believe in yourself that you can be a profitable trader. Having the confidence to trade with proper risk management will lead you to success.
Believe in yourself. Believe in your skills. And most importantly, believe in your ability to succeed.
You would agree when I say, to advance in life, one needs to have a specific set of goals.
Let it be your business, your academics, or in any walks of life, you need to have a vision as to where you want to be.
The same goes for trading. You need to have a vision or a goal.
Trading without a goal is like a ship in the ocean without a destination. The ship could go anywhere but where would it go? Pretty sure none of us knows..
If making money consistently is your goal, then work on that. Doesn’t matter how small a goal is. This can be weekly, quarterly or yearly goals. Once you have this established, then develop a foolproof plan accordingly.
Because, if you do not know exactly what you want from the markets, the chances are the markets will give you what you do not want.
Which is why, always ask yourself if you have any targets, because if you do not you’re sure to miss. On the other hand, if you do have targets but are falling short on achieving the same it’s important to ask what changes should you be making in order to achieve the desired results? Now try to think what’s on the other side of making those necessary changes? It is a great sense of accomplishment and even better, a bigger trading account!
Until next time, Happy Trading!
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