Core Values

Discussion in 'Psychology' started by junkone, Dec 12, 2012.

  1. junkone


    What are some of the core values of a disciplined trader?
  2. Redneck


    Be totally honest with yourself – always

    Listen to (be swayed by) no one

    Be humble

    Willingly admit when you’re wrong

    You don’t know a thing – accept that

    Defining and following a process – is everything

    Always do what is necessary – above all else

    When trading – nothing else matters – allow no distractions (all be they internal or external)

    The only goal – protect capital first – make money second

    Keep things simple

  3. RN's got it covered.

    although i might add courage, because that's what it takes to be totally self-honest.

  4. RN's summary looks great!

    But what does the following mean? Can you expand on this?

  5. Redneck


    Yes Sir Ree Bob...

    Btw – agree it’s a pretty ambiguous/ all encompassing sentence… but/ and; with the respect to the business of trading there are many things we must do – always…, continuously…, and consistently


    So how bout I limit my breakdown to the OP’s theme – discipline

    The always do what is necessary;

    Market is uncertain – to stand any chance of longevity – and/or to create any sort of consistency – we must have a consistent trading plan / process/ approach

    Doesn't need to be complicated – 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 – consistently – 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) – and allow price to develop the bias we but follow

    Losing Trades;

    We must keep them, occasionally equal to our winners.., but by in large – smaller than our winners

    We must accept losing easily

    Winning trades;

    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 – we must manage every wining trade to the absolute best of our ability – every time

    Both losers and winners – we must accept each equally.., maintain emotional / psychological equilibrium – and simply move on to the next trade

    We must maintain patience and focus – which btw begets discipline (which must also be dutifully and consistently maintained)

    There are times to stay out of the market – thusly we must do so every time it is required

    Setups – we must take every one – fore even though the last “how ever many” trades were losers – the one we don’t take – is the one that would have made up for all the losers – and put us in the black (profitable)

    (again taking every set up is an inherent edge few recognize)

    Uncertainty – we must learn to accept it completely (which is easier said than done… and very easy to fool oneself that they have) – and become comfortable enough to function… 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 – never make excuses

    And this list could go on and on – but I think the above is a decent sampling

    Finally the above all else...

    Every human emotion, want, need and/ or desire – possible (real or imaginary) (and more on emotions in a bit)


    Shocks to the mkt/ black swans

    Anything…,and everything.., (trade long enough it’ll happen)

    Must never allow anything to sway us from the task at hand – which is;

    Trading with a consistent plan/ approach/ methodology… taking every set up… keeping losers equal to (sometimes) and smaller than (most times) the winners

    While never missing a beat – no matter if we’re pissed off, happy, sick, up, down, or sideways (or ate Mexican food the night before – little humor as I love Mexican food)


    A comment on emotions/ being human

    I don’t think a person can set their emotions (humanness) aside and trade like a robot – impossible to be what you’re not…

    But; if you come to accept and embrace your shortcomings/ frailties – 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 other… we can bullshit (fool) our friends…, our family…, even our self

    There never has been.., is…, or will be – a trader – who can bullshit their PnL


  6. sle


    * 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.
    * Flush.
    * Warm cookies and cold milk are good for you.
  7. Redneck


    And your point is

    Hesitant to jump to a conclusion that this is some passive aggressive commentary - we'll see

  8. 1. Risk Management

    2. Risk Management

    3. Risk Management

    4. Edge
  9. sle


    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.
  10. junkone


    This is awesome. Exactly what i was looking for. Thank you so very much.

    #10     Dec 13, 2012