This is article is aimed at traders that are truly looking to succeed so I suggest that you pay attention here and dive into this article. Don’t just skim it, instead read it, ingest it, receive it and apply it to your trading. This is an incredible opportunity to become a better trader, take full advantage of it, you won’t find articles like this every day on the internet.
Also after reading leave a thoughtful comment or question I will respond personally to each one individually and it is proven that interaction between traders also sharpens your trading skills.
Laying the Foundation:
In order to break the barrier to become a great trader their is a set of skills that each individual trader must master in order to be successful. I call these the 5 Laws of trading, which means that you must master the 5 laws in order to become truly great. The problem is that you must master the first law first or the other laws will not even matter because everything is dependent on the first law. I will go into the 5 laws in greater detail in an upcoming webinar in the next few weeks but right now lets focus on the first law.
Let me give you an example of why this is so important, I can explain it with one key word: Foundation. When you build a house where do you start building? You don’t start at the roof, because if you did you would have nothing to build on. A house is built step by step and each step builds upon the other in order to get the completed structure, your house.
Trading is the exact same way, if you try to start with finding the perfect strategy and you are not building on solid foundation of trading fundamentals, you have nothing to build upon and you will totally collapse. Yet this is what we see traders doing day in and day out when working to become successful. They are trying to improve their lives and make extra money or even go full time. However they are crashing because they are building on top of nothing and everything they try falls in to a pit of failure. Just like if you try to build a roof on your house before building the foundation.
So what is this skill you ask?
Let me explain to you why discipline must be learned first or else you will never have the success that you are looking for or dreaming about.
If you focus on the strategy before learning discipline you will have a strategy, that your not trading properly. So really you don’t even have a strategy because you are not trading it. Your just haphazardly taking trades for your own personal destruction. I have been helping traders for a long time and one particular student came to me and was explaining that they kept crashing their trading accounts. I then had a discussion with them and after a series of questions I learned that they were miscalculating trade size according to their risk plan and therefore the size was much larger trades than they were supposed to be taking and that completely negated all the other positive elements of the strategy. The strategy must be traded correctly in order for it to work.
3 Steps to Becoming a Trading Discipline Master:
— Casey Stubbs (@caseystubbs) August 8, 2015
1. Have a clear set of rules to follow– If you don’t have guidelines how will you be able to follow them? You can’t so get a set of rules and start following them.
2. Start with something easy and grow your discipline — If it’s too complicated you will fail and lose heart and start going wild and as they like to say you will “fall of the wagon” that simply means you will lose all discipline. Once you start small and begin to have success following your rules then you will get confidence and start to build success.
3. Make Your Goal Following Your Rules–Yes as traders we want to make money! However we need our foundation first, if you can’t build a foundation you will never ever make money trading. So until you master following your rules, make it your goal to follow the rules, then from there when that is established then you begin to tweak elements of your strategy which will launch you into profitability.
Are You a Discipline Disaster?
If your reading this right now and you are not currently a master of discipline, then take a step back and think about how this is impacting your trading and your life. I would like you to reach out to me via comment section and tell me how your going to fix it so you can get your trading to a level of success. Share this post with your trading friends that might be choking themselves out of trading success.
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