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4 Steps to Increase Discipline and Self-Control in Trading

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4 Steps to Increase Discipline and Self-Control in Trading

Trading is a skill that requires time to develop and with proper planning, discipline, and self-control in trading, you can become a profitable trader over a long period of time. Sometimes, as a trader, you might often feel the need to be able to control the market. You might even be trying to do so without being aware of it. This practice puts your money at risk and you end up feeling frustrated and confused. To take full control of your trading and trading mindset, you have to know that you cannot control the market.

Once you realize that in life as well as in markets you can’t control some things irrespective of whatever actions you take then you shift your time and energy focusing on the things you can change. As a trader, we trade against some of the sharpest minds in the world and our possibility of winning is more when we trade with a certain plan. We do our best to fight against some of the sharpest minds in the world but we cannot control all the factors during this battle but we can only control ourselves.

Self-control is often considered as one of the most important factors in trading as well as in our life. We have no control over what others think or do. All we can do is work on ourselves and adopt good habits that make us stand apart from the crowd. But initially, we have to be comfortable with the things that aren’t under our control.

For some traders, it takes them months or even years to understand this same truth. This mistake costs them a lot of money. In today’s article, I am going to convey to you how important it is to control yourself instead of controlling the markets if you want to achieve success in trading over a longer time.

Where do you consider yourself in the overall market scenario?

At any given point in time, the market gets affected by thousands of variables. There is a lot of information coming in every moment from sources like economic news releases, as well as traders who are sharing their opinions about the market. One cannot have control over such a huge amount of data and it is manually impossible to understand all of it at a time. Analysing these factors and trading according to them is quite an impossible thing. The only way by which you can trade into the market is by analysing the behaviour of the price. A technique used to study the behaviour of the price is called price action.

You need to understand that there are thousands of traders competing with each other and everyone wants to be profitable. You cannot control the market and your competitors in it. Trying to control them is of no use as they don’t know and care about you. That is why a stock market is a place where you will be rewarded when you are right and you will be punished when you go against the market.

While trading, our primary focus should be to execute our trading plan with an edge and try to maintain the discipline as much as we can. Remember you are only responsible for your profits as well as your losses so have self-control in trading and don’t waste your time and energy controlling the things which are not controllable.

Out of all other things, there is only one thing in the market that traders have under their control, that is themselves.

We as human beings are really bad at maintaining self-discipline and self-control as these are the most difficult things to control. As it is difficult to control themselves, they tend to control others, this makes them feel better and gives them a sense of authority. The same takes place in trading. But instead of controlling another person, they try to control the market which is not possible and can do much more harm to their trading account.

While trading, traders have the fear of losing money, and when they start to lose money, they start to control the market by over-trading or by risking off more money or by moving their targets and stop-losses, etc. By doing all these things they thought that they have controlled the markets but as soon as the market moves against their expectation, they get frustrated.

“Fail to plan or you are planning to fail”

The first step to avoid trying to control the market is to know whether you are actually doing it. If you are losing money, that might be one sign of you trying to control the market. This article will help you figure this out in more detail. To become a profitable trader, you have to be in control of yourself rather than trying to control the market.

The Next step is you have to make your trading plan when you are not in front of the charts or not in a live trade. Once you make your trading plan it will help you to stay disciplined and in control of yourself. Every trader needs to make the trading plan evetime so that he/she does not do any stupid things while taking a trade because as we discussed earlier market does not care about you and if you go against the market then it will definitely punish you.

Things that we can self-control in trading. Now we will discuss the things that the trader has actual control of.

  1. Entry, Target, and Stop-loss  Irrespective of whatever market does, you can definitely plan your entry point, your target levels, and your stop-loss levels.
  2. Risk management You can manage the risk of your trade by proper position sizing and by maintaining a good risk to reward ratio.
  3. Your psychology You can develop your trading psychology by understanding how markets work and learning about the markets every day.
  4. Trading plan last but not least, you can control yourself by making a detailed plan and execute it with your trading edge and discipline.

Key takeaways-

When we discuss controlling yourself during trading, we are actually discussing the reason because of which most traders lose money. So, in this ocean of opportunities, you have to decide whether you are going to be self-controlled and try to trade with a plan or you are going to try to control the markets by risking off more money. You have to figure this out sooner because you can’t afford to lose your hard-earned money again and again.

In my Booming Bulls Elite Traders Mentorship Program, I have a complete trading plan template that will help you develop your psychology and it will also help you to practice self-control. But whatever you do, always remember one thing: The more you focus on controlling yourself, the more you will see your trading performance improve.

13 Comments

  1. I am just a very big fan of booming bull. I would like someone to mentor me offline . I am from Hyderabad. I really wish and dream that someone mentor me from booming bulls offline. Hope you guys come to Hyderabad ?

  2. Over trading ho hi jati hai aur iss vajah se profit chala jata hai as well as loss me aa jata hu

    First target hit ho jata hai par greed hoti hai aurr aurr aurr ??

  3. I’ve been trading for 3 months.
    Made big profits and big losses.
    But overall i came back where I had started.
    Need help.

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