To some extent yes but I totally disagree with greed being good in most cases, reason being once some new traders assimilate greed being good they will turn to overtrade and might incur more loses .
Greed is not necessarily good in all cases. If it clouds your judgement and make you take more risk than necessary it can cause you problems.
Going right back to the start of the thread, the discipline to follow the rules of your strategy is essential. But a rule that defines the strategy’s success as a return per week in cash is just irrelevant. You might as well have a rule that says stop trading when it gets cloudy - it is not a rule derived from trading, TA or fundamentals, it will not sustain your success.
I also believe it’s good to not “screw everything up in one day”. If the deal had to be closed or close on the stop on it’s own, it’s better to not open any new deals that day at all. and not only with that pair, but in general.
I do that as well, if I make mistake. I step back for a day or so, analyze my error and then I return to trading.
Well Mike18 and dianajs, I understand what you’re saying - stepping back from trading for the rest of the day / week etc. removes the emotion, prevents revenge trading, breaks the compulsion to be in the money by the end of the session etc.
But if you have a well worked out plan and followed your plan, there is no error. The losing trade was just one of the inevitable statistical incidents of a trade going against you. If you made no error, keep trading, just make sure you followed your plan to the letter. Changing the plan in mid-session (or mid-week for longer-term traders) is just asking for a knee-jerk revision - best left for a weekend or a day off or a week off.
Help yourself by emotionally detach from money you trade. Focus on trading process. Or if this help, enter a trade, set the targets and close your platform
Hello jantopem,
Everyone can create or just follow a successful trading strategy but few traders have the discipline and the knowledge to ensure that their money management techniques are consistent. With appropriate money management, you will be able to build your account, generate revenue, and avoid any potential shortfalls that could end your trading career.
disciplin comes only with experience. so if youre not disciplined enough yet just give it time and it will come by itself. but take care you dont run out of funds before your disciplin is where it should be.
thats the survival every trader must go through. the natural selection.
I think it is a different approach that works for each individual, but personally I do not believe artificially restricting your trading time based on your results for the week (or any other timeframe) is sustainable. It creates an unhealthy relationship with the forbidden fruit (the market) that will eventually end in most people devouring the forbidden fruit and guiltily enjoying its pleasures regardless of the consequences just like in the famous old story.
I believe the best way to approach trading from a psychological viewpoint is to trade free from irrelevant distractions and the noise. Set your risk management based on account size, and then trade the market based on the systems you are comfortable with. If the market meets your criteria 10 times per day, trade 10 times. If it doesn’t meet criteria that day, don’t trade. And always remember to trade the market as it is, rather than how you think it will/should be.
Like many, I have learned a lot of this the hard way…
I think discipline is by far the most important element needed to trade successfully, followed by risk control, with the least important consideration being the question of where you buy and sell.
Greed and fear are the propelling force
Pushing us to enter a trade or stay away from trading
When market condition’s are unclear.
Good discipline habit can be develop over time
Some people grow up with it, some are late developer.
I think greed and fear are necessary evil to some extent to keep us motivated and being cautious with our trade.
Nobody comes into trading and succeed straight away.
The learning curve usually take more than 5 years.
I dont think discipline is the most important factor.
I believe the most important factor is actually plain good fortune to meet or recognize A true grandmaster Yoda who can point us in the right direction.
Unfortunately, grandmaster yoda is rare to find. Even when you discover them. They may deem you unworthy to learn about the way of the force. For fear of you falling over to the darkside and cause tremendous harm to humanity.
Some people are simply born with a strong force like analkin skywalker and destined to become darth vader at some point.
In a nutshell, the most determining factor is actually the real stuff mentor who can guide us in the most accurate direction possible for us to really succed at trading.
There seems to be a lot of linear thinking around a subject which is in itself non-linear.
If you had a room of 100 ‘disciplined’ people with the same amount of trading experience, trading exactly the same strategy independently, on say the GBP/USD… after agreeing on a measure of discipline, then haviing a panel secretly assign each person a ‘discipline value’:
By looking at their final profit/Loss figure alone, could you accurately line up these people in a row from the least disciplined to the most disciplined?
Do you get paid in trading for discipline or is it something else?
What is that something else you should be focusing on?
Not exactly sure what your point is WinPsych but to me, the discipline to follow your strategy keeps your account alive and makes the profit. So if the 100 people have the same capital and all are 100% disciplined enough to follow the strategy, they will all have exactly the same profit/loss.
Of course, the people who are not 100% disciplined will have more or less profit/loss or may have been driven out of trading by a blow-up.
In your example, if someones makes more money, are they more or less disciplined?
Neither more discipline nor less discipline
They are just more Lucky
If this is the case, should we then forget about discipline and leave trading to lucky people?
Sadly, but yes… thats what i think…
When its not your time yet.
Its not your time… there’s pretty much nothing you can do about it. And when your time is up. if you have to go, you have to go… but still i will give it all i have got in me till my last breath!
So you mean you need a phase shift of π/2 radians?
Nasty business, some of those sinusoidal waveforms (but I can recommend an otorhinolaryngologist to anyone who needs one).