Dis·ci·pline : a way of behaving that shows a willingness to obey rules or orders.
Discipline is a key element of successful trading, nothing works in trading without the ability to stay focused and take the right action at the right time.
- We must take our entries when we get the signal.
- We must exit when our stop loss is hit.
- We have to manage our position sizing at all times and not get too big in a trade.
- If our trailing stop is hit we have to take it.
- If we get out of a trade and a new signal is hit we have to get back into it.
- We have to follow our trading plan and not get swept away by our emotions.
- We have to do the research and homework first and see if our method works first and then trade it.
- Smart traders stick with markets they know well.
- We can not drift into a different trading style just because our style is out of favor.
- Even if the market is not conducive to our method currently we have to stay focused on doing our homework and taking our entries when the opportunity arises.
