THE PAIN OF SELF DISCIPLINE
In the years of our trading career, we have come across many people who could not become successful traders. They spend eons of time before their computers, analyzing charts from all perspectives, but results don’t match up to their efforts. The result being that they become fed up and loose track. You might also be experiencing such things or could have come across these things. In this blog post, we are going to see why these things happen and how can we set things right.
Unlike many other business, financial trading involves direct relationship with money. The final reward is quantified in the form of profits, it is like, the more you earn, the better you are. So, by instinct, we are forced to generate more profits from all our trades. When this doesn’t happen, we may get fed up. In trading, it is so very easy to ignore the process and focus on results
Profits may be the ultimate goal, but I would say, it is equally important to fine tune the process of making process. Speaking of fine tuning, many people don’t even have a process. All they have is a what! Ask them what they want, everyone will say profits or in more general terms, money. Ask them how they want to earn profits, they won’t know. Many people just gamble and hope to get lucky. Keep in mind that it is not how professional business are run. Here’s the thing, if you know and have a tested strategy about making profits, markets provide you with opportunities again and again which you can capitalize on.
Some may say, I have a clear plan but I am still not making any money. It is because you lack consistency. Consistency is one measure of self discipline. Perseverance breeds consistency and to persevere, you have to be self disciplined. Nowadays, I am seeing lot of people moving towards automated systems as they lack this self discipline
A lot of traders can analyze the markets perfectly but when it comes to trading they fumble. Remember analyzing and trading are different things altogether. They would draw lines on charts and find out that markets have moved like that to a tee, but they could not capitalize on it and trade. Why? Because they don’t have a plan or even worse, they don’t have the self discipline..
I know that perseverance as a mental ability is very difficult especially concerning the situations of ebbs and flows which markets can give. It is painful to be self disciplined. But with knowledge and practice. It becomes easy. I tell you something, the pain of regretting a missed opportunity is greater than the pain of this self discipline. This self discipline and persevering with your plan can give two fold benefit of fine tuning your analysis and also providing with invaluable experience. So shed your inhibitions, create a plan. Develop the mental ability to persevere with self discipline, for it is better than regretting over missed opportunities.
Points to remember:
- If you know and have a tested strategy about making profits, markets provide you with opportunities again and again which you can capitalize on if you are self disciplined.
- The pain of regretting a missed trade will be more than pain of self discipline