How to Approach Trading - Part 2

Discipline is the Key:  You will need discipline in several areas to be successful. First you'll need the discipline to make a plan, rather than shoot from hip. Without discipline, many approach the markets like a craps table and they can expect the same results; short-term successes based on luck and long-term losses based on randomness. Second you'll need the discipline to follow the plan. If you change your strategy at the first setback, did you really have a plan in the first place? You must not second-guess your strategy. Take every trade according to the rules, but if you see a rule is not working, do not be afraid to change it. Third, you'll need the discipline to evaluate your plan. If it is working, don't mess with it, but be honest enough after some time to be able to admit to possible flaws. Anything you do gives you experience. As a result, you can look at your decisions and resolve to change them in the future. Use them as a learning experience, rather than accepting the setback judgmentally by thinking 'I have failed.' Discipline is the key word.