7 Practical Ways To Master Discipline In Trading

Fact: 95% of traders lose money. Hear me out. Discipline is crucial for traders because it directly influences our decision-making process. Discipline, in my humble opinion, separates Consistently Profitable Traders from the 95%. Here are 7 lessons to master your discipline:

Reflect on your emotions. Know thyself.

• Take time to recognize & acknowledge your feelings. What you feel is valid.
• Assess potential triggers for impulsive actions. Define & accept triggers.
• Be kind to yourself & show empathy in hard times. Never belittle yourself.
• ✅ Do: Keep a trading-thoughts journal. This is worth its weight in gold.
• ❌ Don’t: Beat yourself up for losing trades.

Embody market awareness. Eliminate confirmation bias.

• Refresh your bias each day based on new data. New day = new plan.Stay objective & adapt to dynamic markets. Adapt or die (not really).Update your trading plans as new information becomes available.

• ✅ Check scheduled news events daily; be aware of potential volatility.
• ✅ Reduce your risk ahead of high-impact events. Speaking from experience here. 😅

Establish strict trading rules. Define your Non-Negotiables.

• • Consider setting a daily loss limit.I use a daily stop of $550 per account.IF I lose more than this, I know something has gone horribly wrong.Pick a position size w/ appropriate risk & stick to it.Only increase size after 2 consecutive winning weeks.No plan = no trade. Avoid trading in ‘no man’s land’.
  • ❌ Don’t: Engage in revenge trading.
  • ❌ Don’t: Catch “trying to make it back” syndrome.

Build a trading plan. Be consistent.

• • Outline the market context & your key levels each morning.Write out your trading plans & keep them handy at your trading station.Be prepared to trade In the Zone from 8:30am – 12:30pm NY time.
  • ✅ Do: Execute only planned trades with good R:R. Stick to your plan.
  • ❌ Don’t: Increase risk by moving your stop loss. Once you choose an invalidation point, it must be honored.

Implement a shot-clock after losing trades.

• • Take 5-minutes or more to cool-off after a losing trade or series of trades.Use this time to journal, plan trades, meditate or use the restroom.Implement breathwork to increase blood flow to your brain.
  🌬”In the Bhagavad Gita they say, “The mind under control is your best friend, the mind wandering about is your worst enemy.” Make it your best friend, to the point where you can rely on it. Your mind makes you strong from within. It is your wise companion. The sacrifices you make will be rewarded.”— Wim Hof, Becoming the Iceman: Pushing Past Perceived Limits

Journal and review all of your trades.

• Keep a log of thoughts, emotions, data during trades. Refer back to these notes and highlight any salient points.Screen record all your trades & watch the game film daily. This is a low cost way to capture all of your trading action.Conduct daily, weekly and monthly trade reviews. Be honest and patient with yourself.

• ✅ Do: Keep a consistent journaling time to build the habit.
• ❌ Don’t: Journal only winners. Losses are highly valuable lessons.

Always be a student of the game!

• • Be humble & strive to learn continuously.Find a mentor, someone who is willing to teach you.Read for 30-minutes per day to keep your mind sharp.Keep an open mind & always be adaptable.
  • ✅ Do: Find a trading community.
  • ❌ Don’t: Suffer in silence.
    
    
• ✨ BONUS: Discipline is hard work, but it provides freedom.Put in the hard work now and life will be easy in the future. Take it easy now and life will be hard in the future. The choice is yours!