If you ever wondered why 93% of traders fail, it’s because what
really matters is not for sale in some strategy; and it’s not emphasized
in the day trading industry. No, discipline cannot be bought and is not
easily acquired. It is so much easier to believe that buying software
or indicators will bring a fortune. Newcomers to trading spend money endlessly on indicators, black box systems, semi-automatic systems (I was one of them, I know!) while avoiding the truth: without discipline there is nothing. Even the most spectacular system and software will fail.
So many times I have heard the same story: “I can’t control myself. I am a trigger-happy trader. I don’t know what to do!” Only to repeat the same pattern the next day. This continues predictably until their accounts blow up. And as they walk away from the market, the failed traders blame the software or the market conditions, but very rarely themselves.
Money does not lie. A trader’s account shows if what a trader is doing is working or not, plain and simple. If the account is down 20% one should stop trading live and go back to the simulator. If this is you, look into the mirror and remind yourself: “Insanity is doing the same thing, but expecting different results.” Newbies generally see going back to sim as a failure, so they continuing trading live to their detriment. Only successful traders (and those who have been burned before and learned their lesson) will go to a sim account if their live account is down 20% (without margin).
As Ando said, “Discipline is not mere athleticism: it is a way of life.” I could not agree more. I believe the way you do one thing in life is the way you do everything. So why is something as basic as discipline so difficult to acquire? Why has no one created a “discipline pill” yet?
I believe we all have the potential to become successful traders. If you drive a car and can stop at red lights and stay in your lane, there is hope for you. Think about it: if we don’t follow the rules of the road, we risk our lives. So why can’t we take that dedication to rules (discipline) into our trading? Somehow we think, “It’s only money. Rules can be broken. No bid deal.” But failure can destroy not just our account, but damage our soul and relationships. Success, on the other hand, can give us incredible freedom.
To become a serious trader, become disciplined first. Start with skipping a donut or a cigarette. Continue on with meditation, martial arts or yoga. You must practice discipline. Most successful financial gurus practice yoga. Bill Gross, of Pimco, has been practicing yoga daily for many years. Ray Dalio, founder of one of the most successful hedge funds, Bridgewater Associates, mandates daily meditation as an office policy.
Therefore, start with the truth. Look into the mirror and ask yourself, “I am a disciplined person?” Answering truthfully will allow healing to start. Stay away from a live account, until you are disciplined enough to double your sim. Only then you should start trading live. Becoming a disciplined trader will change your life. You will actually enjoy being patient and waiting for those very few successful trades, that are so worth waiting for! Rewards are exponential. But only YOU can make it happen, not another indicator.
So many times I have heard the same story: “I can’t control myself. I am a trigger-happy trader. I don’t know what to do!” Only to repeat the same pattern the next day. This continues predictably until their accounts blow up. And as they walk away from the market, the failed traders blame the software or the market conditions, but very rarely themselves.
Money does not lie. A trader’s account shows if what a trader is doing is working or not, plain and simple. If the account is down 20% one should stop trading live and go back to the simulator. If this is you, look into the mirror and remind yourself: “Insanity is doing the same thing, but expecting different results.” Newbies generally see going back to sim as a failure, so they continuing trading live to their detriment. Only successful traders (and those who have been burned before and learned their lesson) will go to a sim account if their live account is down 20% (without margin).
As Ando said, “Discipline is not mere athleticism: it is a way of life.” I could not agree more. I believe the way you do one thing in life is the way you do everything. So why is something as basic as discipline so difficult to acquire? Why has no one created a “discipline pill” yet?
I believe we all have the potential to become successful traders. If you drive a car and can stop at red lights and stay in your lane, there is hope for you. Think about it: if we don’t follow the rules of the road, we risk our lives. So why can’t we take that dedication to rules (discipline) into our trading? Somehow we think, “It’s only money. Rules can be broken. No bid deal.” But failure can destroy not just our account, but damage our soul and relationships. Success, on the other hand, can give us incredible freedom.
To become a serious trader, become disciplined first. Start with skipping a donut or a cigarette. Continue on with meditation, martial arts or yoga. You must practice discipline. Most successful financial gurus practice yoga. Bill Gross, of Pimco, has been practicing yoga daily for many years. Ray Dalio, founder of one of the most successful hedge funds, Bridgewater Associates, mandates daily meditation as an office policy.
Therefore, start with the truth. Look into the mirror and ask yourself, “I am a disciplined person?” Answering truthfully will allow healing to start. Stay away from a live account, until you are disciplined enough to double your sim. Only then you should start trading live. Becoming a disciplined trader will change your life. You will actually enjoy being patient and waiting for those very few successful trades, that are so worth waiting for! Rewards are exponential. But only YOU can make it happen, not another indicator.
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