Why do you need to be a Disciplined Day or Swing Trader?
Professional day or swing traders understand that their emotions will affect their stock trading results.
Due to this, they develop personalities that allow them to overcome the
barrier of emotions and trade stocks or options profitably. Successful day or swing trading requires a trader to be
disciplined at all times, no matter what. In this business, discipline is the key to
success. The best traders are robots at their trading desk, and do not let fear or
greed affect them. Overtime they have mastered this trait and avoided becoming
part of the 90% of day or swing traders that fail to succeed.
How to make consistent money by day or swing trading?
Discipline is vital to consistently making money because they cannot let their
emotions control them. New and inexperienced traders.no matter what is their trading style, become anxious and
impatient when they see their profit and loss go negative or positive. They will start
making other trades and think that one trade is an end all be all. This is called poor
trade management and will surely lead to a new trader’s demies. The solution to not
trading on emotions is to develop traits that allow you to control your response to
them. Once developed, a good day or swing trader will be able to counteract their emotions and
continue to make logical decisions, even when under large amounts of stress.
Developing discipline will allow a trader to base decisions off of data and analysis,
and not off their “gut” feeling.
What do you need to to in order to be a disciplined day or swing trade?
Traders also must learn discipline to become patient when trading. Many traders find
themselves bored throughout the day with nothing to do. This boredom causes
traders to engage in the dangerous activity of “trading just to trade.” In day trading,
patience is a virtue. Just because a trader is not in a trade does not mean they are
not working. A disciplined trader uses the time they are not in a trade to search for
possible scenarios to engage in a trade. They wait for the right situation and only act
when the time is right. Discipline prevents a trader from trading for the wrong
reasons and allows them to carefully conduct an analysis with a clear mind.
Finally, traders need to be disciplined so they do not deviate from their own plan or
strategy. Each traders plan is in place to set goals and limit losses. Many amateur
traders go ballistic as soon as they see their profit and loss go red. They begin to
think of ways to earn their money back and start making trades that are not wise. By
doing so, the trader deviates from the plan they designed. These uneducated
decisions overtime can result in big losses. But a disciplined trader understands that
no one is perfect, and each trade is accompanied by risk. Traders must stick to their
strategy and use their technical skills, not instinct, to make their next trade.
All in all, day trading</strong> or swing trading is as much psychological as it is technical. Traders need to be
disciplined in order to keep making money. Discipline will keep emotions from
interfering with data and analysis, allow traders to remain patient when the market is
slow, and ensure that a trader stays with their trading plan. Without discipline, a
trader will make rash, immature decisions that will eventually lead to failure.