Discipline is highly overrated | stockbee


Discipline is highly overrated

Was being disciplined or focused in trading one of your new year trading resolution?

How well is your resolution going by the 3rd day of trading?

Most struggling traders believe that their core problem is discipline or focus. Discipline, persistence, passion, patience, and things like that do not build edge. If that was the key to building edge there would have been many successful traders.

Traders fail not because of lack of effort. In fact most traders make extra ordinary effort to be successful and they still fail.

They spend long hours, try hundreds of things, spend thousands of man hours and spend money and they still fail.

So let us be clear things like discipline and focus and stuff is not key. 

Trading psychology alone is also not key. 

In fact most of the trading psychologists are failed traders.

Discipline is highly overrated. 

You can do perfectly wrong or useless thing with great discipline. With great discipline you can take your 1 million account and make it 300000 also.

I know a lot about discipline. For 10 years I was in a school whose motto was Discipline Builds Character. It was a boarding school modeled on British Boarding school. Evey single thing was about discipline. Every waking hour of your life in the school was driven by discipline and rules. Consequences of not following discipline were severe.

Most of the things which we did with great discipline were perfectly useless activities like polishing door knobs, shining your shoes for 20 minutes everyday to get mirror shine, making your bed. Enormous energy was spent by the Masters on making sure the discipline was not broken.

Discipline only will get you so far. Most people who believe focus or discipline is their trading problem are chasing their own tail. It is not the solution to any of your problem.

If you have enduring edge and you are successful in trading you will be motivated to be disciplined. If your methods have edge and they are working you do not need to make extra efforts to be disciplined or focused. The returns which you get itself will motivate you to be disciplined.
Solution to your discipline problem or focus problem is to build an enduring edge.

To build an enduring edge you need deep understanding of market structure

Most traders fail because they do not have structural understanding of the market and they chase methods, scans, indicators, patterns and alerts.

Most traders do not survive long enough to reach a stage where they can understand market structure.

Most traders do not start out by an objective of understanding market structure. 

They start by looking for way to make money.

Some are lucky to find a method based on market structure early in their career.

Some survive long enough and figure out market structure.

If you want to build enduring edge first and foremost understand market structure.

You must know how market operates and why it operates in that manner.

If you can understand that then you can build many ways to benefit from that understanding.

Key to competence is in consciously being aware of your skills , edge, and competency.

Late last night on the members site I made a 38 minute video on How to build an enduring edge for those who are interested. It has a key insight in to market structure.


  • gravitar Huif commented on January 04, 2011
    Great video! :)
  • gravitar hamme commented on January 04, 2011
    Excellent video
  • gravitar Jon commented on January 04, 2011
    It's been interesting to watch you evolve over the years. I remember way back when (what.. 06 07?) when you said that all stocks that go up 200% must go through 100% first so if you just focus on all stocks up 100% you will catch stocks that make 200% moves.. That hit home with me and I've been trading momentum variations ever since.
  • gravitar saby1977 commented on January 04, 2011
    I loved the video. I have to give kudos to Pradeep, for putting so much passion and effort to help us learn and become better in trading.
  • gravitar GolfGuy commented on January 04, 2011
    Great video! Thanks
  • gravitar BlueSky commented on January 05, 2011
    Awesome video.

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