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Every parent knows that a baby must first crawl, then walk, and finally run. There are a lot of intermediate stages on that journey. You as a trader must acknowledge that the journey that you are embarking on has land mines everywhere that could halt your progress. Like a baby learning to run, you must start with small steps. You must first determine what beliefs and values you need to succeed. You must research the methodology you believe that you will be most comfortable with; then you must customize it to your individuality. After creating this methodology, you will have to test it on old data to determine if it is valid. Next you must test it in real time, then you must use it with discipline. As you repeatedly test your methodology and your beliefs, you are also creating beliefs and rules about discipline. |
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The amazing thing here is that it is impossible to have discipline in trading without becoming more disciplined in your personal life. Likewise, it is impossible to have discipline while trading if your personal life is in shambles. Highly successful people are extremely disciplined in their professional and personal lives. Of course there are highly disciplined professionals who have very little order in their personal lives. However, these individuals would be even more successful if they exercised greater discipline in their personal affairs. |
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The fastest way to become a highly disciplined trader is to realize that discipline is nothing more than a state of consciousness with associated rules. Since these rules are actually beliefs, you can change your existing beliefs about discipline by using the techniques previously mentioned. When you do so, you can actually improve your level of discipline. The rules (beliefs) that you use to determine if you are exercising discipline can be created so they empower you as a trader. When you create rules for being disciplined, you must make them easy to accomplish (true for value rules). If you have too many rules to determine if you are trading in a disciplined way, you will wind up trading with no discipline. This is because you are making discipline too difficult to accomplish. |
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As you know, rules have high emotional content and a lot of certainty. They're absolute, and we become highly upset if our rules are questioned. However, a rule is a belief, and if we are aware that our existing beliefs about discipline may be lacking, we can change or improve them. The dilemma that beginning traders face in devising new beliefs is that they lack experience (references). This is easy enough to resolve with role models. By asking intelligent questions, we can determine what references our role models use regarding discipline. |
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Discipline is the ability to consistently follow rules and procedures that have been developed through practice, research, and training in all areas of |
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