How exactly does a trader go about “being disciplined?” First of all, make a game plan. Decide which markets you like to trade (stocks, forex, options, etc.). Get clear on which kinds of trades you prefer to take (breakouts, reversals, etc.). Determine a position size that fits your account and your personality, and plan to take trades only up to that size. Next, seek out trading opportunities. This may mean subscribing to a stock pick service, downloading charts and taking the time to manually search for setups, or just patiently waiting in front of your PC for something to come along which you can’t live without. Finally, once you have found the setups which meet your criteria, you’ve got to HIT THEM! You’ve got to be in it to win it, so don’t be afraid to try. If you are wrong, your trading plan is your safety net to limit your losses so that you can try again.
As traders, we’ll be wrong plenty of the time, so the idea is to stick with an approach which lets us stay in the game and find profits. A disciplined approach is the single most important aspect a trader must possess in order to profit over time. Whether you trade stocks, options, futures, or forex, whether you swing trade or day trade, whether you prefer reversals or breakouts, the common requirement for success in every market is discipline. Find trades that fit your game plan, and have the discipline to follow it.