Discipline is key for day traders. Without it, traders make common trading mistakes like:
- Impulsive trade decisions
- Revenge-trading
- Overtrading
- Breaking your rules and risk levels
- Entering trades early
Discipline leads to confidence. And it keeps you from making risky moves.
So let's look at some ways you can build your trading discipline and keep more of your profits in your pockets…
Routine
I like to start my day early ... As former U.S. Navy SEAL Jocko Willink says, get up before the enemy.
Personally, I like to chug a ridiculous amount of coffee, work out, and eat my six poached eggs. It gives me the energy to take on the day.
And the earlier you're up, the more time you have to prepare...
You can come to the markets with a clear head and make better trading plans and decisions. Because you never know what the market will bring from one day to the next…
And the best part is…
Having a routine doesn't cost you any money.
It's a simple thing you can do to start every day in the best possible way.
Success rewards routine. Discover how to start your own morning routine here.
Trading Plan
I talk about having a trading plan a lot. But the truth is, it's an excellent way to help you stay disciplined.
It can limit impulsive trading mistakes. And it gives you confidence to know exactly where you'll enter a trade, how much you're risking, and where you'll take profits.
That way, you can cut out emotional decisions and make your trading as mechanical as possible…
But along with your trading plan, you also have to be trading the right stocks, patterns, and strategies…
Strategies
When you know exactly what patterns and strategies you're looking for, you can easily recognize a trade when you see it...
And all the other stock moves and fluctuations become background noise you can ignore.
Focus and hone in on the best strategy that works for you…
If you don't know what's working best for you, a slow market day is a perfect opportunity to review your trades.
And if you haven't been journaling or recording your trades, use slower days to build your trading spreadsheet.
Find out how reviewing my trade helped me see my mistakes in my live PLRX trade here.
And learn how to track your trades in this video.
If you don't see a setup or pattern you like, it's okay not to trade. Sometimes the best action is no action.
If the markets look shaky, sometimes the best way to keep your money is to sit on your hands.
Let the charts shake out. Go study, read a book, or watch charts and learn.
Be patient, disciplined, and wait for your best setup.
If you want to know which stocks I'm watching and how to approach potential trades — join me daily in Pre-Market Prep.
And don't miss this … Tomorrow I'll drop a BIG SteadyTrade Team news announcement. Stay tuned!
Have a great day everyone. I'll see you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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