Discipline in Investing and Trading

Discipline can be simply defined as your ability to invest your trading plan and to follow .

Discipline is a fairly simple concept . You just need to define what , when and how you want to handle and manage . You also need to decide how to treat as you earn money and also bad days come along! Your account

Psychological issues make up 90 % of the trading equation . Discipline is the essence of all mental health problems . Pierce in the whole process . All rules and procedures and plans not matter if they are not followed .

There is little doubt that for those who find success on the market, it often comes from writing the wrong plan . It comes from not writing one at all , or not following the one that is written !

Once you have your plan the following three rules are in order :

1. Do not change your plan during the trading day.

2. Commit to making changes only when the market is closed and

3. Go over your plan every morning before you trade .

The best way to enforce discipline is simply by consciousness . Keep a record of your trades . On each trade , including an answer to the simple question : " Was this the trade part of my trading plan ' Yes or no There is no middle ground ? . . !

Be aware that the undisciplined traders are almost guaranteed failures .

Ask yourself if you are keeping the discipline , or are you just taking random trades that look good at the moment ?

You can not fix something if you do not know it's broken .

You must be aware that you have a discipline problem !

If you have the discipline problem, there is an absolute answer for you !

The answer is this :

JUST Discipline yourself ...
There is no alternative !

Copyright © 2005 I.E.C. Haramis

Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece , the U.S. and Belgium . He has been active in the equity markets since 1972 . Since 2002 he is New Business Development Managing Director at an investment bank .