Discipline for D-street winners….an article by Dstreetwinners

I recently wrote a guest post for a Trader/Colleague, for his website (www.profiletraders.in). The topic was “Trading Discipline”. Sharing herewith, the same article. Hoping the readers enjoy the same. Let me know your comments on the write-up, below the article.

Trading Discipline

When one speaks on topics like discipline, it can often appear like a moral science class. When one writes on this topic like what I am doing now, it can again appear an easy topic to write on. Well; fact of the matter is, it could be easy to speak and write on these subjects for many, but this is one of the most difficult aspects of trading. And lack of discipline is also the major reason behind the pathetic performance of most traders. So what makes discipline, such a crucial yet difficult deal? Why can’t traders often stick to a few rules which can suffice to bring affluence and financial freedom? Let me dig deep enough and see what comes out….

Many years back as a school student; I used to be quite a disciplined person. Always regular in attendance, nails always trimmed, hair always tied up neatly and homework always completed. I was proud of being a disciplined student whom teachers rewarded and classmates looked upon. I was confident that I had; what it takes to be successful, in my endeavours ahead. The chosen line could have been anything…be it from science or any form of arts. Then many years later, I entered D-street, and I started aspiring to become a successful trader.

Har picture dekh ke socha; mein bhi actor ban jaaun…

Kismat ne ghoomaya…D-street mein…pahonchaya…

Hun yaaron ka mein yaar…de dhanadhan….

John Jani Janardhan…

Well, if you have read my book…”How to make money in intraday trading”, then you might be used to such lines in between J J….

Coming back to the point, I entered D-street and then I learnt the bigger meaning of Discipline. I learnt how narrow, my meaning of discipline had been till now.

D-street is an A-graded quality of mirror. It introduces you…to yourself…like no one else can. It shows you exactly what you are, and what you are not. And here I am, to share with you, some of my learnings, as mentioned below:

1. Discipline is not just about behaviour, punctuality and grooming; it is about mind management in a big way. It is about how you act and react, to events around you. It is about how much you can give up what you want today/now; for what you eventually want in life. It is thus about delaying short term gratifications for longer term goals.

2. Discipline is what separates winners and losers; be in in D-street or be it in life. I know so many around me, who were star performers as students but hardly made a mark after stepping out in real world. Our schools; unfortunately do not prepare us enough for the chapter called “life on streets”. And again unfortunately; most traders finish their chapter in D-street; without even knowing that, the issue behind their failure was not in their system, but it was in the discipline that exuded as traders. Seek within, before you seek elsewhere. All answers shall be found there.

3. I often read on social media…things like….person ”X” is the reason is I lost money…and person “Y” should be banned from talking or teaching markets. Well. this too is a matter of discipline. The first condition to succeed is that; you need to own your failures, before you can own success. If you depended on person “X” or “Y” for your gains without doing your homework; you ought to lose. No one can save you. This ownership of failure is a matter of trading discipline.

4. No one is forcing anyone to follow anyone’s advice. Our choices are our responsibilities. Riches; larger than life….never comes easy or free. In fact; nothing worth having…can come free. Even love of family is to be earned, through good karma. There are no free lunches anywhere. Knowing these realities; is trading maturity. And immature people have no business being in D-street.

5. I also hear people say; the stock moved against me only to throw me out and then proceed in my direction without taking me along…Well, you must understand that a successful trade may need multiple entries. And while taking those, your hand will not shiver; if you had exited with limited loss in initial failed attempt…If you are afraid to re-enter, it is probably because you took a big hit initially. This could be due to huge position size, or ignoring of SL. Both these issues of risk management and position sizing…are matters of trading discipline. In fact; these can make or break a trader forever.

6. Permitting your hope to fly higher than your logic, even when your trade is going against you…… or permitting your fear to overtake your trading rules, is again a matter of discipline. And trust me; D-street doesn’t forgive any of these. You straight away end up paying from your pocket. Hope in a failing trade and chasing in a run-away move, are both behavioural traits of a trader who lacks discipline.

7. Another matter of discipline for traders would include these two mistakes:

o 1) Premature exits that leave lot of money on the table for the next guy, and

o 2) The tendency of giving back earned income by overstaying your welcome. Both these behavioural traits are babies of indiscipline. Yes exit management, is a matter of disciplined trading, once your exit rules are well defined.

8. Respecting fellow trader is also a matter of professional discipline. Bad-mouthing people, no matter the reason, will not take anyone ahead. Staying away from non-sense which spoils your spiritual energy….is also discipline. And this is a major matter.

I may sound blunt….but trust me…D-street is going to be more blunt with you…so better get used to this. As I told you…D-street is the best quality mirror available around.

Unless a trader overcomes all these and many more similar tendencies; making money on consistent basis is going to be difficult. Earning one day, and giving up the next day, will only keep traders busy; without actually brining in any major change in level of financial freedom. Trading is one line, wherein you can remain busy whole life, and try to make others believe that you are a great trader, without actually being anything but that.

If you happen to see any of these traits in yourself; then it could be the time to take charge of matters pertaining to trading discipline.

Soch kar…samaj kar….trade kar….After all, its’ your life, make it large. You didn’t come here to be average, did you ??