Part 4 of 4
NEW YORK (TheGoldAndOilGuy.com) -- The Most Important Skill That Money Can't Buy -- Self-Discipline
This is the last part of my four-part series. This last mistake is the by far the biggest and hardest problem individuals have. Believe it or not, the best way around it is with the use of algorithmic trading strategies that trade for you simply because they cannot mess things up. This is one of the reason automated trading has exploded in the recent years.
Over the 16 years I have been trading and investing, I have never found a person who has not had discipline issues in their trading career. The brutal honest truth you likely do not want to hear is that you will never succeed at trading if you cannot follow a proven trading strategy and all its rules over and over again.
While some individuals just don't have enough discipline to trade, most of us fall victim to fear, greed or our ego causing us to break our trading rules and do silly things with our money or open positions.
Lack of discipline is failing to do what you should do in a given circumstance when trading your strategies. We all know how easy it is to break rules from time to time because our gut feeling is so strong against what our trading strategy is doing but it is a huge mistake to intervene.
How to Avoid Your Lack Of Discipline
There are only three ways that will only help reduce (not eliminate) your lack of discipline.
1. Lose enough money that you now respect the market.
2. You have taken the time to think, create, and test a proven trading strategy that trades within your market philosophy and risk levels. (I talk about this in great detail in my book.)