» Disciplined Trader Series

Why People Fail At Trading

Kirk — Tue, 29 Dec 2009 21:08:05 +0000

Having worked with thousands of traders over the last 5 years… one thing is obvious…

Most traders have a good enough trading system to make money and the reason they DON’T is
that they lack solid trading discipline. The traders that succeed in trading do the following;
they follow the trading strategy, they keep a journal, they track their win-loss ratio, they
have a trading plan, and they follow their trading plan.

The successful traders are patient; they wait for the trades to come to them. They only take
trades that have a high probability of success. They usually trade on time frames larger than
the 5 minute. They trade from the 15 minute chart or larger. The only reason they use the
5 minute is to time the entry when they are day trading.

The more unsuccessful traders lose the smaller the time frame they gravitate to. The successful
traders gravitate to the larger time frames. When trading the larger time frames there are fewer
whips saw actions so you don’t get faked out as often.

The trader needs to know their trading strategy inside out. Not just go over it a couple of
times and never review it again. If you keep the trade tracker then you will know where you
need help and can go back to the trading system and study the areas you are week in.

When something goes wrong unsuccessful traders start to trade more and the more they trade the
further away from their trading plan they get. They let emotion and greed creep in. When this
happens they are just about finished as a trader.

A trader needs to know when to go back to demo trading and review the rules.

If you are not succeeding as a part-time or full-time trader, then discipline is likely your issue.

A Trading Plan and Discipline = Keys To success

Kirk — Wed, 25 Nov 2009 19:58:42 +0000

“Only a trader with a solid, tested trading plan and the total discipline to execute that plan,
in all its aspects, will be equipped to take advantage of market opportunities and be a
consistently successful trader. All others will fail.”

Now ask yourself a couple of questions.

QUESTION 1:

How many times have you done a little chart work and you just “knew” that market was going to
take off? Then you hesitated, for whatever reason, to pull the trigger and the big trade slipped
away… again!

Problem: You have not created a solid trading plan you could trust and feel confident in
enough to make your move when you should have.

Solution: Learn what a “solid” trading plan IS… which includes a style of trader that fits
you, a heavy dose of money management and risk management (two separate things!), and a tight
entrance and exit strategy… then make yourself a trading plan, test it, run it on a demo
account, fine tune it then repeat it until it becomes second nature.

QUESTION 2:

Have you ever had a nice little winning streak, where you had 3 or 4 nice winners in a row,
only to put on that “final” trade where you watch all your profits go down the tubes?
Because you did not have a stop loss in place nor a trading plan to remind you to put a
stop loss on.

Problem: You’re out of control when things go “too well”. Your overconfidence gets the
best of you and you put on a trade that’s not a “high probability” trade because “you’re
on a roll”, or worse, you “load up positions” so you can really take advantage of your
“streak” without proper money management.

Solution: Train your mind (and I mean change your subconscious patterns, because your
subconscious beliefs control your actions) to stick to the “high probability” trades and
to honor your solid, tested trading plan. Treat your trading like a business, not a game.
Unless you get really honest, with yourself and where you are mentally and emotionally
with your trading and equally as honest with the “tightness” and quality of your trading
plan then you will NOT BE READY to take advantage of the opportunities that will soon be
upon you in the markets.

Here is something you need to know. The volatility that is present when trading the foreign
currency market will shake out those without a tight trading plan and solid discipline.

THE GOOD NEWS…

Like most traders, we struggled in our first few years of trading. We were not willing to
admit that the problem with our trading it was not the market and that the problem was ours
because of our lack of discipline. We even got to the point where I “personified” the
market … and felt that it was “out to get me”.

Then I did something that most traders are not willing to do, I looked in the mirror.
I got honest with myself. I realized that by going around thinking that I had many years
of trading experience and all I needed was more “experience”, I accepted the TRUTH… I was
a trader with 1 year of experience repeated several times!

I wasn’t changing. I wasn’t improving. I was lying to myself! That realization
changed EVERYTHING. Well, not the realization, but the ACTING on the realization.
I decided that I was going to get some help. I found some successful traders that had
been down the road and learn what I could from them. I also committed to myself that I
was going to be disciplined in what they asked me to do.

Here are some ideas on what you can do to turn your trading around.

FIRST:

Develop a tight plan of action (if you don’t know how, learn how). Review all that is
in the trading systems forexstrategysecrets.com has opened up to you. Then write out
your tight trading plan from the instruction you have available to you.

SECOND:

Understand that if you are not TOTALLY disciplined right now, you CAN be in a matter of
months, if you are trained properly.

YOU CAN DO THIS!

Big opportunities require big commitments. And if I’m right… you may vary will build
the fortune you have been dreaming of. The time is right, right now.

You can contact our Student Advisory Board and ask for an explanation of our affordable
coaching programs. I know this will light the way for improved trading.

800-961-6212 or support@forexstrategysecrets.com.

Four Thoughts on Discipline in Trading

Kirk — Wed, 04 Nov 2009 19:19:43 +0000

We have summarized the comments of 4 traders about being a more disciplined trader.

A day traders comments: He is a consistent trader his accuracy was good but would have
a blow up one day a month and lose a lot of what he had made. When he realized that
being right is not the key to making profitable trades. Sticking to your pre determined
plan and making high probability trades and not being emotionally attached to being right.
Stick to stop losses religiously. When he corrected his thinking he has quadrupled his
profits in just a few weeks.

Another trader makes a few comments. Traders look for the Holy Grail. The Holy Grail
could be within you. Get rid of the bad habits you have. Harnessing your emotions gets
rid of bad habits that keep you from being a winning trader. People over look their i
nner trader. Traders need to get rid of the bad habits and reinforce the good skills
they have by being disciplined.

This trader felt that there was an advantage of strong mentor ship. Trading is 85% mental
and 15% know how. If you are a disciplined trader you are following the rules of your
trading strategy. Step back look at the trading strategy, document the rules and make
sure that you are truly following the rules. Successful traders document their trading
activities they learn over time where they have improved. You need to be a disciplined
and focused trader. Being more patient and waiting for the high probability trades you
will notice the percentage of your winning trades will go up. Being disciplined will
help you to have more confidence and be calmer in your trading.

When you learn the basics of trading you do not have to learn about your emotions.
BUT when you start trading live you quickly learn about your emotions. Control the
emotions of fear and greed. You will not be able to eliminate it but you have to
control them. Writing the journal helps you know where you need to improve you do
not have to tweak your trading system. How you feel when you lost and when you won.
Take less trade avoiding the bad trades so the account grows. People will spend a
lot of time learning the technical side of trading but never do the record keeping
or checking their emotions.

See if any of this information could help you become a more disciplined trader.

Be a Trade Taker Not a Trade Watcher (24 of 26)

Kirk — Tue, 13 Jan 2009 13:50:47 +0000

Traders can get depressed because they knew the market was going one way or another; however, they failed to enter the market. Usually the response as to why they did not put on a trade is that they were waiting to be filled at the absolute best possible price (and never got filled), or only two out of three of their market indicators were present and they were waiting for the third. The net result of all this procrastination and hesitation is the trader was correct in Determining the market direction but his profit on the trade was zero. We don’t get paid in this business unless we put the trade on. Don’t overanalyze the trade. Place the trade and then manage it. If you’re wrong, get out. But you’ll never be right unless you actually make the trade. We have a system that if you see 2 of your 5 indicators lining up at the same time enter a small trade. If you see 3 of your 5 indicators lining up at the same time enter a larger trade. If you see 4 or all 5 of your indicators lining up at the same time enter an even larger trade. Then manage those trades for maximum profit. The key is to not over-analyze, over procrastinate, or hesitate. If you do you will lose or not make any money. You will just watch the chart patterns form and move on.

Be a Trading Machine (23 of 26)

Kirk — Mon, 12 Jan 2009 13:46:43 +0000

If you have ever been around or seen manufacturing you know that the machines do the same thing all day long over and over again. Each machine is good at what it does and if you ask a filling machine to put on the lid or make a cut it does not work. Traders are good at certain things. Find out what you are good at and keep doing it over and over again. Day after day trade after trade. Have you ever watched a bricklayer? They shows up for work every day of their working life and executes with the same methodology. Brick by brick by brick. The same consistency applies to traders, as well.

Confidence & Control (21 of 26)

Kirk — Thu, 08 Jan 2009 12:49:14 +0000

Knowing you can do it BUILDS CONFIDENCE AND CONTROL. How nice would it to be to turn on your computer in the morning knowing that if you play by the Rules, trade with discipline and stick to your methodology, the probability of a successful day is high. Knowing that you can grow your account even after a draw down will increase your confidence and make it less likely that you will have very many drawdowns. When you do have a draw down it will be a small one. When you become a mechanical trader your confidence will grow and the winning trades will flow. Remember the Rule: If you make a little bit every day, then you have earned the right to trade bigger. Thus, by following your Rules of Discipline, your little profit each day can soon turn into much more profitable days.

The Money Pile (19 of 26)

Kirk — Tue, 06 Jan 2009 12:36:00 +0000

Make a little bit everyday. Make a pile of money. Don’t and make a money pit.

When you can do this illustration in a demo account then start trading live.

Lets take a $1000 account for example:

Make $5 a day for 250 days a year = $1250     .005% per day
Make $10 a day for 250 days a year = $2500    .01% per day
Make $15 a day for 250 days a year = $3750    .015% per day
Make $20 a day for 250 days a year = $5000    .02% per day

Now get a part time job on weekends where you can net $40 per week. 52×40= $2080
Save the $2000 and put it in your trading account in a lump sum at the end of the year so now you start with:

$3250 $16.25 a day for 250 days a year = $4062.50 + $3250 = $7312
$4500 $45.00 a day for 250 days a year = $11250.00 + $4500 = $15750
$5750 $86.25 a day for 250 days a year = $21562.50 + 5750 = $27312.50
$7000 $140.00 a day for 250 days a year = $35000 + $7000 = $42000

It is amazing how quickly your trading account will build up over time just by making a little bit every day.

If you can do the trading part of this illustration after 2 years you will be making more money than the example. More important than the money you will have developed the trading skills and discipline to be on your way to becoming a great trader. The discipline comes from following your rules, applying consistent effort toward a predetermined goal.

Use Time to Monitor the Loss of a Trade (17 of 26)

Kirk — Fri, 02 Jan 2009 12:30:06 +0000

You can determine that you will get out of a trade before a news announcement or you will not carry a trade over a weekend. These are good ideas if you are in a trade that is going against the trend. Many times the market will move because of news, then just return to the direction of the overall trend. This is the last day to take advantage of our New Year’s Deal before it expires. Its a great time to test out our course. Use this Coupon and get 50% off Launch Pad! New Year Coupon Code: 78E57

Become Good at Losing (16 of 26)

Kirk — Wed, 31 Dec 2008 12:20:15 +0000

We get a lot of questions and comments about what this means. You should know by now that you will lose sometimes when trading. That does not mean you will lose all of your account unless you use poor money management techniques or none at all. It means don’t get all emotional about a loss they are going to happen and the sooner you can get over it and move on the faster you will become a good trader. Accept the fact that you are going to have losing trades throughout the day or week. Get out of your losers quickly. Love to get out of your losers quickly. It will save you a lot of trading capital and will make you a much better trader.

Speculators Always Lose (15 of 26)

Kirk — Tue, 30 Dec 2008 12:15:50 +0000

I have never met a successful speculator. It is impossible to speculate and consistently have large wins. Don’t be a speculator. Be a trader.

Trading in the direction of the trend on a 1 hr or 4 hr chart is always a good way to trade. Use good money management techniques with proper stop loss settings and you will be way ahead of the speculators. Most traders that do scalping are not profitable. There are some that can do it but they learned at great expense.

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