Maintaining Trading Discipline
Trading is an art. Like any other business, it takes long, hard, disciplined effort to become a successful trader. The journey may be long, but the rewards can be great if you persist through. Here are 5 points to keep in mind to remain on track:
1. Maintain a trading diary. Use it to record all your trades (especially your mistakes).
2. Routinely read through your diary. This helps in remaining objective.
3. Share your experience with other traders. This helps you gain perspective.
4. Cut losses early by using a real stop order. Mental stops don’t work!
5. Backtest thoroughly. Trading is a continuous process of discovery and optimisation.