Trading is a challenging task due to emotions triggered by volatility and market uncertainty. The most difficult task for a novice trader is to determine how to make money. He seeks out different ways for a reliable trading strategy, following the rules and thinks that money would just roll in. If trading had been that easy, then every novice trader would turn into a professional trader in the blink of an eye. For a novice trader, making money is essentially just a function of analysis. But trading in reality is a confluence of trading behavior dynamics and strategy.Success is unavoidable when you continually perform modest things.It’s rightly said by Van Tharp, “You don’t trade the markets- you trade your beliefs about the markets.”To be a successful trader, one must master the trading mindset, which is achieved by the adoption of a proper attitude and belief.In trading, there is no such thing as a holy grail. A trader must master the trading skill in addition to mastering a plan. But nothing happens overnight. Success is highly correlated with “constant efforts”.Consistency and discipline: Core elements for successful tradingTwo psychological attributes that influence trading outcomes are consistency and discipline.What consistency is and how does it benefit?Some traders add credence that they become consistent when they start making profits on a routine basis. But, is consistency in trading only about delivering profits regularly or is it about being focused on the process despite the noise. Traders who make beyond the threshold of consistency, experience discomfort both emotionally and financially.For a trader to be consistent, the process or the strategy must outweigh the results. Working on the same technique continuously filters the noise. It helps you stay focused and aids in building and operating a better trading system. Once the habit of following the particular process is developed, a trader can be devoid of capital erosion.Consistency is the driving force behind growth and perfection and builds an edge over the markets.How discipline entails the roadmap to consistent trading habits?“To be a money master, you must be a self-master.” A true fact as stated in a famous quotation by J.P. Morgan. The one who masters himself, masters the world. Discipline is a magical key that unlocks the door of success. It bridges the gap between goals and accomplishment. Self-discipline is the ability to regulate one’s emotions and overcome flaws, as well as the ability to stay on track despite temptations to give up and stop.Discipline clears distortions and makes you a better trader by:
- Setting goals according to your lifestyle
- Making rules contrasting to your trading style
- Adhering to the rules and following risk management
- Examining the trading errors and reviewing them
- Rectifying the errors and reflecting the correction for a better trading system.
- Avoiding to over trade to cope up with the losses
- Handling uncertainty and coping up with emotional barriers of fear, greed and anxiety.
