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When Discipline Works And When It Doesn’t

Acumenfrx   By AcumenfrxLike
October 5, 2019In Mind Set, Psychology Leave a Comment

Trader A has a preferred trading style. It might be a momentum style. it might be a directional style. It’s a style that fits Trader A’s personality and that has made money in the past, so Trader A sticks to that style. In sticking to what fits his or her personality, Trader A demonstrates discipline.Trader B has preferred trading “setups”. These are patterns in the market that make the most sense to Trader B. Those patterns might be breakout patterns; they might be patterns of mean reversion. Trader B has seen these patterns work out, so Trader B sticks to trading those setups. In sticking to what fits his or her understanding of the market, Trader B demonstrates discipline.Two traders, Two forms of discipline.Two of those traders are losing money. Are you trading what you subjectively prefer, or are you trading what is objectively present in the market?

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Disclaimer: we are not providing financial advice or investment advice. The content we post here is mainly for educational purpose only. Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary.

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