I wasn't sure about this... So did you violate your system by thinking you'll make up your losses? To me it sounds like you revenge traded.
Whenever a trader starts complaining about a lack of discipline, it is generally because he's started to lose, at least I haven't seen many complaints about discipline from people who are consistently winning. As his system apparently begins to turn against him, he no longer trusts it as much as he should. He then starts to second-guess it and futz with it. This almost always makes things worse. Therefore, rather than tell yourself that you must have discipline and you must be a disciplined trader and blah blah, look at your system. Markets change, and if your system worked fine for a few months, then got tatty around the edges, it's possible that your strategy was too "market specific". In other words, the market may have changed and your system didn't change with it. So instead of strapping yourself even more tightly to a system which may be inappropriate for the current market, determine why your losing trades aren't working. Determine what adjustments, if any, have to be made. Then start again and try trading - paper for a few days - your revised system. If the situation doesn't improve, then pull out the toolbox again. Your lack of discipline, in other words, may have nothing to do with a character flaw. Your refusal or inability to follow your system may be due to a little voice somewhere telling you that there's a problem with your system, not with you.
all of your post is valid. My system only trade once a day at most if any. I did a revenge trade trying to make back my losses. I had the discipline to put in my stop and never withdraw it. But when it hit I want to make back my losses. In Apr and May I did get hit but at that time I am more discipline to accept it. Anyway enough of this nonsense myself. My system did not fail and my system is still within expectation. From today this date 12 June 2003. I am going to start all over again. From my very next trade I will stick with my system and NEVER violate the rule again not anymore. Please if I ever violate the rule again. Please use all the worse language you can on me. I will continue to post my daily trade and discipline on this board.
ya good question I guess this is the problem a lot of traders face. Losses is part of the game we just got to accept it. All of us know this since day 1 before we trade but to implement it is another story. Everyone know we should cut loss let profit run, shouldn't goes against the trend bla bla bla but to really do it is another totally different story. Anyway I setup my mind from today onwards not to violate the system anymore.
As with systems... There's a big difference between developing one and trading one. You need to switch your mentality around from Objectivity to another.
Hello Benysl, Since this thread is entitled, "How can I be disciplined?" I just want to let you know that you can never, under any circumstances let that happen. That's one of the many things that separates the amateurs from the professionals. If you know, in your heart and mind, that you shouldn't be doing it...DON'T DO IT. The amateurs are weak. They will do it. The professionals are strong, they won't give in to the temptation. If the professionals gave in to the temptation they would be amateurs, and if the amateurs could control their undisciplined conscious and unconscious urges, they would be professionals. To be a consistently successful trader. You must have rock solid discipline. There is no question about that. Gosh, so many traders focus on the things that are so unimportant. They waste so much energy and brain cells on the "meaningless" things. Forget about fear, greed, the specialists, profits, losses, trying to find the "perfect" strategy, and all of that other garbage. Forget about the woulda's, coulda's, shoulda's, and if this and if that. Just be disciplined, stick to your method, and be consistent. In order to not be a "fish" in the market...at a minimum, you must be disciplined. Without that, you're not even in the game. (I'm just trying to help) I would truly like to see you and many other traders succeed. But you can't use a english dictionary when you are trying to look up a russian word. Wish you the best, gotta_trade
Benysl, Don't worry, you'll again violate your rules, very soon. You'll always think that today is the exception. You'll say to yourself I'll violate my rules one more time--After today, I'll never violate them. This will go on for a while until you lose all of your capital after you increase your position size to your margin max following a losing trade and holding overnight. You won't be able to sleep that well that night. Next morning, when you look at the pre-open charts, you won't believe the gap that went against your position. You'll feel your stomach burning and you want to go and throw up. When the markets start regular trading hours, your broker will close your position and you'll have zero maybe even negative account balance. You'll put together some money and start trading again. The cycle will repeat itself. Ups and downs, rule violations, lucky trades after violating your rules, too many contracts etc...You'll again blow up. If you have more $$$ to feed your trading, you'll again start trading. You'll promise yourself that you'll never repeat your mistakes! But you will, hopefully you won't repeat them as often. The cycle will repeat itself. However, you won't need to fund your account as often. IT WILL TAKE YOU YEARS TO GET DISCIPLINED! If you don't have enough $$$ to learn it hard way, you'll be out of the game and never be back again. My single advice to you. Do not have too much money in your account. If you usually trade x contracts, have enough money to trade only 3x contracts. At least, your trading money will last longer and you'll get more exposure to the markets and most importantly you'll learn your own limits. Chinook
This is actually a very smart idea. Traders who have too much money to start with tend to put risk management and money management on the backburner, perhaps assuming that they'll have this thing down before the money becomes a problem. And guess what? Having just enough puts the management issues in the front window. Limiting yourself to only one or two trades a day is also a help.