Patience and discipline go hand in hand in a traders toolbox.
Discipline means staying the course, following the trading plan, and not deviating for any reason. If a 2 pt. Stop Loss is in use, discipline prevents a trader from moving it while managing a trade. The same applies to trade types. Some traders don’t like certain trades. When that is the case, discipline should prevent the trader from taking that specific trade. The trade should become part of the written plan before it is permissible to take it, otherwise discipline is being compromised. We ignore discipline entirely at our own risk in trading. Discipline and habits are cousins. Poor discipline leads to bad habits, which usually leads to disaster.
So how is a trader supposed to develop this good behaviour? Focus and practice are two ways to increase discipline. Trading is a relatively solitary endeavour, so if we eliminate distractions and concentrate on the market, achieving good focus and discipline is possible. Now what is a distraction for some, may not bother others at all. It depends somewhat on your experience level. For new traders, paying attention is important. If you are in a trading room with a moderator, focus is even more critical because of the teaching going on. You want to hear what is being said and make notes in your journal for future reference.
Two prominent enemies of discipline are fear and greed. Both occur often throughout the session, and exercising control over both is paramount to maintaining a professional approach to what the market is doing. It is very easy to become frustrated with a trade, or yourself, and then start to lose focus. This can lead to an impulse entry, impatience, increased fear and anxiety, and over trading. The outcome is usually not good.
Becoming a disciplined trader is an important first step in achieving consistent success. It is not a perfect science by any means, but staying aware of your feelings and reacting to emotional change early does make a difference.
