Self discipline

Self Discipline

A few examples which expose the lack of self discipline in trading

    Widening a stop loss order when you see prices going against you. Your stop loss level is the level where you are willing to accept that your trade was wrong. Widening a stop loss orders signals that your emotional responses have taken over and that you cannot make sound trading decisions anymore.
    Not treating trading like a business. Trading is not necessarily hard or difficult, but the approach of the average trader makes it impossible to earn profits from trading. Testing different ideas, calculating and analyzing data, tweaking, continuous self-improvement, preparation and running a trade journal are all the things the regular trader does not want to hear about and that is exactly why more than 80% of all traders will never make money.
    Impatience. Trading is a long term activity and you do not have any influence on the outcome of your trades. Your only responsibility as a trader is to find a method that has a positive expectancy, religiously apply it and constantly monitor every little aspect of your performance.
    Warren Buffet put it nicely when he said ““The stock market is designed to transfer money from the impatient to the patient.”