Discipline a Trader’s Key Trait
Discipline is  "key" element for success
Discipline is “key” element for success

When reading interviews with Top Traders and Market Wizards (the traders interviewed in Jack Schwager’s books), and autobiographies of the most successful traders, the trait that is always cited as a very important key is discipline.

Why is this the case? It is because trading the financial markets is filled with opportunities to experience:

  • Greed  
  • Fear of mistake and loss
  • Anxiety and worry
  • Elation and Euphoria
  • Physical and Monetary Pain

When you are hit with this barrage of emotions on an hourly, daily and weekly basis the natural human response is to react in a manner that we are programmed to. Every person is programmed to seek pleasure and avoid pain. Making and losing large sums of money is a massive trigger for pleasure and pain. This means that in a trading environment our natural inclination is to do a number of things that are counterproductive to success:

  • Avoid actually taking a loss and keeping the position and hoping it will come back into profit;
  • Adding to a losing position to average the loss; ( There is a difference between this and scaling into a position)
  • Breaking risk rules when on a winning run; ( so easy to be seduced)
  • Cutting a loss even though the loss is not near our stop loss.( Fear)
  • And so on.

It is because of these swirling emotions that discipline is so difficult to maintain. But it is critical to long term success.

I would not dare abandon them, So we keep to our risk rules unless we as a trio discuss why we wish to make an exception to our risk rules.

For a general outline of the importance of self-discipline and how you can change undisciplined behaviors into disciplined ones see: we suggest enrolling at the  AceGazette.

For the method, we use to manage “fear and greed”,  we recommend NeuroLinquisticProgramming.  Beginning in 2017 we will detail the chapters in the book that made the changes in our lives. W still use the techniques today

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