Home Crypto Trader Pro 4 Things That Test Your Trading Discipline

4 Things That Test Your Trading Discipline

by Icosuccess
Crypto Trader News, bitcoin, blockchain, altcoin, cryptocurrency, marketing, distributed ICO,

There is a stark reality that you are certainly well-acquainted with if you are a trader: “You will be tested.” In fact, everything about your trading experience will be tested; from your patience, fortitude, portfolio management, and trade choices, etc. And through this, you will have to maintain your trading discipline and resilience. We’re going to highlight four of the most common things that will test you throughout your trading career.

[wlm_private “Crypto Trader Pro – Monthly|Crypto Trader Pro – Yearly|Crypto Trader Pro (Lite)”]


Traders and financial workers are in a very stressful business. As a day trader, you but your financial health and future at risk every day, depending on how aggressive you pursue trades. And a streak of losers may not only shatter your nest egg, but it can also decimate your confidence. Being disciplined may soften the blow of any loss, but emotion and personality play a role in how we rebound.

One of the many things you will have to manage in trading is the feeling of frustration. Yes, I feel the frustration emanating. You may feel like everything is out of control, and you’re a hairsbreadth from rage quitting, spite trading, or breaking something. There are ways to successfully manage stress but let’s talk about some of the most common triggers that frustrate the hell out of traders.

Forget FOMO. You Actually Missed Out.

Don’t you hate it when you’ve opened up your trading forum to find out that if you had signed in maybe a half hour sooner, you missed out on a golden opportunity?

It’s especially frustrating if it’s a stock or cryptocurrency that you’ve been tracking for a while and you were confident to jump into the market. Maybe if you were present, you could have watched the charts and price action and made adjustments to your stop-loss settings or pre-determined buy order.

That’s just annoying as hell, isn’t it?

And it makes you want to do things that you ought not do. The truth is, it happens and when it does, it will test you. Don’t do anything you’ll regret in the morning.

A Series of Unfortunate Events

Some days it doesn’t feel like anything is going right! Let’s just say that you missed out, like we previously mentioned, but then your day is triggered into a series of unfortunate mistakes, trades, missed opportunities.

You’re losing your grip and things like hitting your daily loss limit early but later in the day there are clean moves that are bouncing off beyond your stop limit with all the nice pullbacks and trade corrections or market exhaustion. But now, you simply cannot participate in the market.

This situation will test your discipline and definitely your patience so listen up. You will be tempted to take on more trades, especially if all the indices are pointing to a positive trades. Here’s the thing. The simple thing to do is to avoid getting caught up in such a market and, while very tempting, if you break your own rules then you’re headed down a slippery slope of throwing caution to the wind and risking the principal in your trade portfolio.

It might be best to hold trading for the day and reassess the charts and trends, then make adjustments for tomorrow. Discipline is knowing your boundaries and knowing when to say when.

Distractions

This is perhaps the most avoidable things that frustrate traders. Distractions! But most of the time we are our worst enemy. If you’re a full time day trader with a home office, the distractions are everywhere. From social media, to trips to the refrigerator, checking the news or watching day-time soaps, even walking the dog. All distractions that take you away from your job or task at hand.

And there are just as many distractions at work. Water cooler conversations, people stopping by your desk to say hello, emails and phone calls that need to be answered.

If you’re at home, you need to have the discipline to put in the work hours. We’ll concede that emergencies, like the house being on fire or the kid is sick… And who can resist puppy dog eyes when they need a snuggle during a thunderstorm? That’s not helping, but with discipline is prioritizing the important things in life too.

As for an office setting. Well, unless it’s the boss bothering you, put a DO NOT DISTURB sign on your chair if you have to. There’s work to be done and money to be made!

One great tool to help you zoom back to attention is properly setting your market alerts and notifications. Set alerts above the levels so that you will be ready at the screen whenever it happens. Then set more alerts at levels that pique your interest. You can always adjust later but sometimes distractions like feeding yourself or going for a walk is necessary for mind/body health.

Stop While You’re Ahead

This one is a neck breaker – not literally, of course, but let’s say that you’ve had a really good trading day and you’ve got a winning streak that makes you jump for joy but your “official” day is over and you want to keep riding the high.

What to do?

The temptation to keep going is strong. You’re feeling confident and brilliant and despite your trading plan, a plan that is supposed to keep you in check, you keep going instead of stopping while you’re ahead.

Here’s the problem with that. Just like rage trading, being a “bad winner” can also wreck your trading discipline. You might be riding a temporary high but now you’re putting your day’s profit at risk because you wanted one more trade, and then another.

By the end of the night, who knows if you’ve actually made more, broke even, or found yourself at a loss. The biggest loser is your time to rest or spend quality time with family, or doing something other than trading. There is more to life than watching charts and winning trades.






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.

[/wlm_private]

Want to read the rest of the article? Join our pro-membership and receive all of the following:

✅Access to ALL content.
✅Access to the CTN editorial staff.
✅Access to our CTN trading dashboard.
✅Access to our exclusive telegram channel where all our pro-members and editorial staff are in. 
✅Ability to request content/research material!

Join now!

Related Posts