Self-Discipline:Key to Trading Success

Dr. M. Woodruff Johnson
One of the best article in recent times
Rahul did it again, another big loss day, another day where he did not follow his trading plan.   Rahul had taken trading courses from some very so called trading gurus. He had a trade plan, which covered minute details and was quiet comprehensive. He knew the importance of having a set of trading rules, heck, he had a Golden set trading rules.  He had learned the importance of money management and risk management; in fact, he had in his plan that he would only risk 2% of his portfolio at any particular time and that he would only take trades that were minimum 3:1 reward to risk ratio.  And, his plan listed his appropriate position size for entering trades.  Rahul had gotten fed up yesterday and in an almost fit of rage he “promised” himself that he wouldn’t “violate” his rules again.  That was yesterday, exactly twenty-three hours ago.  he lost the...


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