Army man discipline
Discipline
is directly related to the bottom line of a traders not only in the
stock market, but in all the markets. The professional trader always
tries to be disciplined and stick to his system. He himself follow
disciplinary rules thinking always about protection of his money, making
of money and always remain positive minded at the end of each trading
period. He remains on sidelines when price movement is in narrow range
and places stop losses while trading during that period. He moves his
stop loss as the market moves in his direction. In every order he keeps
priority in protection of capital employed and while protecting capital
he aims to make money. He stays within the parameters of his risk and
reward. His primary object is to profit, but capital should not be
diminished to a large extent while trading. He acts just like a person
aiming to shape his body. If you have a desired body shape in mind, then
you will definitely eat and exercise accordingly….Exactly same is with
the professional traders. He follows all the disciplinary rules like an
army man.
Accept the results whatever may be…
While
trading, whether it is in stock market or any other market, a trader
either make money or lose money in any given trade. The ultimate result
is aimed to make more money in the right trades than what is lost in the
wrong trades. While doing such trading a professional trader learns to
accept failure as a part of trading activity, but he also uses this
failure as a learning tool. In fact what he learns from the losing trade
is more valuable than what he learns from profit giving trades. His
such type of psychological acceptance boosts him up with courage and
next time he enters into a trade with utmost good faith and self
confidence.
Put aside ego…
It is
easy to recognize profit from a loss. It is easy to understand
disciplinary rules framed for trading. Then what is difficult….?What
makes it so hard to apply the rules…? There is some power which controls
our mind and prevents a trader to act as per the pre determined course
of action. Let us call that power as “Ego”. Until a trader learns to get
rid of his ego, he will never make money in any market consistently.
The market gives rewards only to those who have subdued their egos. This
is so because when a trader does not identify his ego, he never accepts
his mistakes done while trading and this prevents him in correcting
these mistakes. He only goes on finding various arguments in the favor
of his trade which is in fact a wrong one. So long as a trader makes
money following his trading strategy and rules framed by him therefore,
it is well and good. But after getting some success in few profitable
trades, when he starts compromising with the rules framed already, and
ultimately suffered a lot at last. Why…?
If you
make profits in some trades, naturally you cann’t resist telling you
mates how well you are doing. Aiming good for them, you just tell them
how easy it is to make money in the market (and how clever you are). All
good things come to end when market changes its trend. It becomes
harder for you to find good trades. You are frequently stopped out of
your positions …incurring series of small losses. You start doubting
your own decisions and trading strategy. You start changing your trading
rules, looking for other additional indicators for confirmation, though
they give conflicting signals. You forget your own original trading
technique and rules …and now you concentrate on new technique with new
rules…..and it wipes out you totally…..This is “Ego…” playing its vital
role in making a trader undisciplined.
There are
so many trading courses available, but many fails to prepare traders
how to face market place. They simply present trading plan with some
examples where plan works very well, explain basic concepts only. It if
is so easy, then why to sell such trading courses. Such courses fail to
prepare and teach to traders for the times when their plan does not
work. Such training courses fail to prepare and teach the trader for the
pressure and uncertainties that he will have to face when the market
goes against him, and how to come out from them.
Many
times trading courses are marketed on the assumption that the average
investor is greedy and lazy. They offer only the prospects of wealth
without effort. Of course, trading courses may help to gain good working
knowledge of basics and explanations about traps and pitfalls that a
trader faces everyday in the market. But such courses cannot teach any
trader about self discipline and understanding of his own weaknesses.
Only experience and lots of practice help in this line, there is not any
magic formula for this.
If you can’t stand the heat….
….do not play in the kitchen……
If
you do lose money in the market, don't blame your course provider, your
broker, the institutions, insiders, the government, OPEC or the Fed.
They are just some of the factors that you have to take into account in
your preparation. You are responsible. You are on your own. No-one
except you is going to shed a tear if you burn your capital. So take
care ...... and PREPARE…!!!
|
