How to Learn Discipline

pannet1

Well-Known Member
#21
By far the best post EVER read by me in Traderji. Would love to connect with you one on one brother. You sound like my type of trader :)
Just no words to amplify points 1, 2 and 5.
Hi,

Great, but I have only echoed a small sound from the big Ramayana of trading psychology posted here in TJ by @madank. The credit should go to him.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#22
Some ideas to develop trading discipline according to me:
  1. Withdraw your profits every week & let your capital remain for future trades. This will help you recognize the importance of booking your profits. For example, let's say you make a profit on a few trades and end up net positive for the week. You withdraw those profits and buy something with it. By doing so, you will actually realize the fruits of your labor. If you let the profits remain in the trading account, you will feel like risking it for future trades as it provides a layer of cushion against your capital. More often than note (unless you're experienced), you will squander away booked profits by booking losses in future trades. However, if you withdraw some profits, you will be eager to do it again and thus trade carefully.

  2. Record your daily performance. Objectifying your performance on a day to day basis helps to stay on track. Otherwise, it's very easy to wreck your own plans the minute you get excited or afraid while trading! A plan is not necessary but recording your daily performance in terms of P&L, No. of Trades, Views, Tomorrow's expectations is very helpful IMO.

  3. Take the FYERS 30 Day Challenge. I'm serious, it helps! We have seen the winning ratio to substantially increase among the ones who take the challenge than the ones who trade in the regular environment.
Disclaimer: I have a vested interest in mentioning FYERS 30 Day Challenge as I represent the company. However, I thought it was appropriate to mention it in this thread as it is directly related to the main query which is regarding trading discipline. I encourage readers to make their own informed decisions.
 

pannet1

Well-Known Member
#23
That brings to another point mentioned frequently by my mentor. If you could make your profits to compound means that you are not dependent on it for buying onions and tomatoes.

We made a study from a small set of winning traders to see what is common among them.

1) They are confident on their system and do not jump system when they are in drawdown.
2) Irrespective of their astonishing success in trading most are working full time in a regular job (and trades are run by Algo).

Note: The small set of winning traders we studied are from an Algo automation company.

Some ideas to develop trading discipline according to me:
  1. Withdraw your profits every week & let your capital remain for future trades. This will help you recognize the importance of booking your profits. For example, let's say you make a profit on a few trades and end up net positive for the week. You withdraw those profits and buy something with it. By doing so, you will actually realize the fruits of your labor. If you let the profits remain in the trading account, you will feel like risking it for future trades as it provides a layer of cushion against your capital. More often than note (unless you're experienced), you will squander away booked profits by booking losses in future trades. However, if you withdraw some profits, you will be eager to do it again and thus trade carefully.

  2. Record your daily performance. Objectifying your performance on a day to day basis helps to stay on track. Otherwise, it's very easy to wreck your own plans the minute you get excited or afraid while trading! A plan is not necessary but recording your daily performance in terms of P&L, No. of Trades, Views, Tomorrow's expectations is very helpful IMO.

  3. Take the FYERS 30 Day Challenge. I'm serious, it helps! We have seen the winning ratio to substantially increase among the ones who take the challenge than the ones who trade in the regular environment.
Disclaimer: I have a vested interest in mentioning FYERS 30 Day Challenge as I represent the company. However, I thought it was appropriate to mention it in this thread as it is directly related to the main query which is regarding trading discipline. I encourage readers to make their own informed decisions.
 
#26
Learning to be disciplined requires to follow some tips. To begin with, never trade without having a solid trading plan, because without one you will always be confused regarding taking decisions. Try to trade with smaller lot sizes so that you can have sufficient control over the trade. Forget about your own unrealistic profit goals and try to trade real. Try to operate on the actual swings in the market instead of day-dreaming about your own plans. Also, try to remain disciplined in the other parts of your life as well, which are not related to trade. This will definitely bring some improvement as far as your trading habits are concerned.
 
#27
Learning to be disciplined requires to follow some tips. To begin with, never trade without having a solid trading plan, because without one you will always be confused regarding taking decisions. Try to trade with smaller lot sizes so that you can have sufficient control over the trade. Forget about your own unrealistic profit goals and try to trade real. Try to operate on the actual swings in the market instead of day-dreaming about your own plans. Also, try to remain disciplined in the other parts of your life as well, which are not related to trade. This will definitely bring some improvement as far as your trading habits are concerned.
yes ..."Also, try to remain disciplined in the other parts of your life as well, which are not related to trade."

this is first one to put in place to get discipline in trading too
 
#28
By discipline, people understand different things. For example, if the trading system gives ambiguous signals and the trader gets confused, he can lay the blame on the lack of discipline. Write a trading robot, and you will be happy. And if you break money management, keep a small amount on your trading account and you will not be able to exceed the risks with all the desire. If you are caught with tilt, it’s also impossible to fight. Try to trade orders, do not sit long at the terminal.
 
#29
- be a constant and long distance runner, don’t give in so easily to losses.
- never copy other people’s trading plans. Have your own and follow that strictly.
- keep interacting with experienced traders and learn from them. Remember, there is a difference between learning and blindly following.
- have goals that can be achieved. don’t try something that is beyond your reach, as that will bring only stress and no confidence.
 
#30
The best way would be to -
Formulate a logical plan and stick to it.
Identify your strength and weaknesses and work on them .
Take a break in between . Do not just sit in front of the trading platform for long . You need to start afresh for making sound decisions.
Avoid emotional trading . Feelings like fear and greed are not going to take you anywhere . So remain neutral .
Analyze your trades each day . See where and why you went wrong.
Did you overlook some important facts , Are you alert enough ? Do you have all the necessary information?
At the end of the day , take a recap and revisit all your trading decisions and you’ll be good to go i guess.
 

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