Discipline Revisited – Don’t Be Fooled

There’s a difference between having the discipline to stick to your trading plan and having an unbiased perspective to see the market clearly. Though related, they each require different parts of your attention to master.

Building on an earlier post regarding discipline, one of the most understated items about being able to trade successfully is keeping one’s mind flexible enough to see both sides of a trade without being attached stubbornly to one view or the other. Doing this will help you not only become a better trader but also allow you to potentially open your eyes to other opportunities that might also fit your trading approach.

Discipline, both mechanical and emotional, will only go so far. Discipline is what will allow you to pull the trigger and trade per your plan consistently. But without a clear unbiased mind you may fool yourself into seeing trading opportunities that aren’t really there – the entire time thinking you’re following your plan but based on a faulty perception / interpretation of what the market is really telling you.

This is something that I still occasionally have challenges with. Thankfully this isn’t as big an issue for me as it used to anymore because of many years of self-training and being aware of my state-of-mind (and pain due to many trading losses). You can definitely keep it in check as long as you’re honest with yourself and aware of it when it happens. A trading journal will definitely help in this regard (keep one if you aren’t already) if you make sure to make a note of your thoughts and feelings about the market and your trades each day (whether you trade or not). If you review this regularly (at least once a week) you’ll start to develop a skill for knowing when your mind starts playing tricks on you especially in the heat of the moment when trading or anything else in life for that matter.

As with anything else, with practice you will have this mastery over yourself and coupled with the discipline to execute your plan you’ll be on the right track to a long trading career.

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