Maybe you’re new to trading, or maybe you’ve been trading for so long that it’s like second nature to you, but this scenario puts you in a losing streak and you haven’t quite figured out why. Chances are that you’ve fallen into a trap of your own making with a poor disposition and bad trading habits. Where is the discipline?
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It doesn’t matter whether you’re a pro trader or rookie, everyone deals with certain levels of discipline – or lack of it – from time to time. But here’s the thing: Disciplined trading will garner success more often than trading off the cuff or wandering in and out of trades because the winds of change blew your confidence. Do you want to be a successful trader? If you answered yes then let’s discuss solutions for poor trader discipline.
Mindset
To be successful in anything, we have to adopt a positive mindset and work diligently toward our goals. An elite athlete has the discipline to train hard, eat right, take care of themselves. They find a consistent schedule and keep at it.
To become an elite athlete in the trading world, you also have to find the discipline to do your research, check the charts and references, and find some semblance of consistency because a trader’s goal is to make money. When they don’t stay disciplined, they lose opportunities or make mistakes, which can be costly in the short and long term.
You have to ask yourself – How serious are you about making money? Then set your mind to doing what needs to be done on a daily, weekly and monthly plan of action.
Breaking Bad Habits
In a previous article by Crypto Trader News: Seven Sins in Bad Trading Practices, we laid out the common errors that traders make but many of them stem from being undisciplined and falling into bad habits.
In a study by Phillippa Lally that was published in the European Journal of Social Psychology, Lally suggested that it can take upwards of two months to 254 days to create a good habit – and yet good habits are so easy to break! A missed day at the gym turns into a week; one candy bar turns into a sweet after every meal, and one lazy look at the markets to make off-the-cuff trades turns into a losing streak. The good habit is blasted away because the discipline wasn’t there.
So, how does one break the bad habit? Some might say it depends on the severity of the problem. Drug addicts might need an intervention, but some smokers use patches or quit cold turkey. But what about trading? How do you break bad habits in trading?
The best course of action when you find yourself on a losing streak a mile long is to STOP AND ASSESS. Obviously, keep the trades going that are working in your favor but put the breaks on the consistent losers.
Take the time to re-acclimate yourself to the charts, read the news and announcements coming from the projects you wish to invest in, start slow and watch the direction of your trades. If it’s working and you’ve built your confidence, then give yourself room to be more aggressive. Be diligent and build GOOD habits in trading.
Affirmations
Affirmations come in many forms but the idea is to think it, say it, then do it. This principle of affirmations is to drive your mindset and nurture habits in a positive direction. As I’ve mentioned earlier, good habits are really easy to break and we need all the tools in the box to climb higher and be better.
Affirmations for traders:
I will look at the markets today.
I will find great investment opportunities.
I will research those opportunities and make good choices.
I will make a profit today.
Think it. Say it. Do it.
If you’ve dug deep to figure out where you’re making mistakes, then you already know what must be done to turn things around. Sometimes those are hard decisions – but necessary ones.
Once you’ve done the work, chances are you will see better rewards from your investments and wouldn’t that make you feel better? Of course it will!
Penalty and Reward
Nothing drives behavior like penalties and rewards. Most people ignore their own needs because it feels selfish, but when it comes to trading, you must think of yourself as a paying client!
If someone was paying you to make trades, you’d probably bend over backwards to help them succeed, and yet many of us do not give ourselves that benefit and drive to do well.
If you had a string of bad trades on a client’s behalf, you’d probably get fired. There’s a real life penalty. Why not apply that concept in your own trades? What do you need to do to keep this job and build a profitable portfolio for your client?
When you’re working for your goals, you must be just as disciplined as you would be for someone else. Don’t think of it as your money; think of it as your future’s money. A string of bad trades will shake your confidence and maybe you really aren’t good at it. That doesn’t mean you must stay in the loser’s bracket. If you have the capacity to learn and change, you can turn things around.
And when you do, the reward is whatever you’ve dreamed of doing with a winning portfolio, be it retirement, the boat you’ve always wanted, or the dream vacation.
Are you ready to do the work?
Disclaimer
Content provided by CryptoTraderNews is for informational purposes only, and should not be construed as legal, tax, investment, financial, or other advice. All information is of a general nature. As always, there is risk with any investment. In exchange for using our products and services, you agree not to hold CryptoTraderNews Pro, its affiliates, or any third party service provider liable for any possible claim for damages arising from decisions you make based on information made available to you through our services.
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