Discussion in 'Psychology' started by junkone, Dec 12, 2012.
What are some of the core values of a disciplined trader?
Be totally honest with yourself â always
Listen to (be swayed by) no one
Willingly admit when youâre wrong
You donât know a thing â accept that
Defining and following a process â is everything
Always do what is necessary â above all else
When trading â nothing else matters â allow no distractions (all be they internal or external)
The only goal â protect capital first â make money second
Keep things simple
RN's got it covered.
although i might add courage, because that's what it takes to be totally self-honest.
RN's summary looks great!
But what does the following mean? Can you expand on this?
Yes Sir Ree Bob...
Btw â agree itâs a pretty ambiguous/ all encompassing sentenceâ¦ but/ and; with the respect to the business of trading there are many things we must do â alwaysâ¦, continuouslyâ¦, and consistently
So how bout I limit my breakdown to the OPâs theme â discipline
The always do what is necessary;
Market is uncertain â to stand any chance of longevity â and/or to create any sort of consistency â we must have a consistent trading plan / process/ approach
Doesn't need to be complicated â but it does need to be constant (of course modified as/ if necessary only during off hrs)
We must apply above said plan/ process/ approach â consistently â day after day.., month over month.., year after year
(Btw doing this has an inherent edge few recognize)
We must approach each day with a neutral bias (centered if you prefer) â and allow price to develop the bias we but follow
We must keep them, occasionally equal to our winners.., but by in large â smaller than our winners
We must accept losing easily
We never know how far (or even if) price will move in our direction.., or if price will end up retracing to give us a loss â we must manage every wining trade to the absolute best of our ability â every time
Both losers and winners â we must accept each equally.., maintain emotional / psychological equilibrium â and simply move on to the next trade
We must maintain patience and focus â which btw begets discipline (which must also be dutifully and consistently maintained)
There are times to stay out of the market â thusly we must do so every time it is required
Setups â we must take every one â fore even though the last âhow ever manyâ trades were losers â the one we donât take â is the one that would have made up for all the losers â and put us in the black (profitable)
(again taking every set up is an inherent edge few recognize)
Uncertainty â we must learn to accept it completely (which is easier said than doneâ¦ and very easy to fool oneself that they have) â and become comfortable enough to functionâ¦ and ultimately thrive in it
Always have complete humility / openness (market does change) / willingness to learn / willingness to change
Always take full and complete responsibility and accountability â never make excuses
And this list could go on and on â but I think the above is a decent sampling
Finally the above all else...
Every human emotion, want, need and/ or desire â possible (real or imaginary) (and more on emotions in a bit)
Shocks to the mkt/ black swans
Anythingâ¦,and everything.., (trade long enough itâll happen)
Must never allow anything to sway us from the task at hand â which is;
Trading with a consistent plan/ approach/ methodologyâ¦ taking every set upâ¦ keeping losers equal to (sometimes) and smaller than (most times) the winners
While never missing a beat â no matter if weâre pissed off, happy, sick, up, down, or sideways (or ate Mexican food the night before â little humor as I love Mexican food)
A comment on emotions/ being human
I donât think a person can set their emotions (humanness) aside and trade like a robot â impossible to be what youâre notâ¦
But; if you come to accept and embrace your shortcomings/ frailties â then a person can do what is required in spite of their emotions (humanness)
There are many non trading examples of people doing exactly that every day
Something to ponder;
We can bullshit (fool) each otherâ¦ we can bullshit (fool) our friendsâ¦, our familyâ¦, even our self
There never has been.., isâ¦, or will be â a trader â who can bullshit their PnL
* Share everything.
* Play fair.
* Don't hit people.
* Put things back where you found them.
* Clean up your own mess.
* Don't take things that aren't yours.
* Say you're sorry when you hurt somebody.
* Wash your hands before you eat.
* Warm cookies and cold milk are good for you.
And your point is
Hesitant to jump to a conclusion that this is some passive aggressive commentary - we'll see
1. Risk Management
2. Risk Management
3. Risk Management
That there is no "core values" that contribute to success in trading - it's a profession, albeit with a little more decay in the skill set then your average carpenter.
This is awesome. Exactly what i was looking for. Thank you so very much.
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