High trading

Page 342

CHAPTER

16

Discipline: The Key to Success

Once a trading plan with solid entry and exit strategies and risk parameters is put together, the steps toward becoming a winning trader are almost all in place. What remains is the discipline to follow the rules that have been laid out. This is where the majority of traders fail. Many people know what to do or what they should do but still trade poorly because they don’t have the discipline to do the right thing. No matter how many times they say they won’t do it, they keep chasing the market, risk too much, or let losers go past stop levels. They may try hard to improve their trading skills, knowledge of the market, and technical analysis know-how, but unless they concentrate on their discipline, their results will not improve.

SUCCESS TAKES DISCIPLINE To become a great trader one has to learn many skills, but aside from knowing what to do, a trader needs to have the discipline to do the right things. There are countless ways a trader can make or lose money. All traders know they have to cut losses, trade less, have a risk management plan, and do their homework, but without discipline it is impossible to put together all these tools and become a successful trader. Discipline is what ensures that all those things are carried out, and it is probably the single most important tool a trader needs. Discipline is needed in every aspect of trading and 322

Copyright 2003 by Marcel Link. Click Here for Term of Use. www.rasabourse.com


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