Build enduring edge
Was being disciplined or focused in trading one of your new year trading resolution?
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.
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.
How well is your resolution going by the 2nd Month of this year in 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.
Key to success in trading is to have high self efficacy beliefs about your setup and that happens if you have a mastery experience in that setup.
Traders fail not because of lack of effort. In fact most traders make extraordinary effort to be successful and they still fail.They fail because they do not have successful setup and developed procedural memory to trade it.
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 the key. Contrary to claims by many traders and also many things recommended as trading psychology is not based on scientific psychology but just lot of ra ra self help stuff.
If you want to improve trading psychology study the work of Albert Bandura , he is ranked 4th in all time greatest psychologist.
Discipline is highly overrated.
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.
Key to success in trading is to have high self efficacy beliefs about your setup and that happens if you have a mastery experience in that setup.
Traders fail not because of lack of effort. In fact most traders make extraordinary effort to be successful and they still fail.They fail because they do not have successful setup and developed procedural memory to trade it.
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 the key. Contrary to claims by many traders and also many things recommended as trading psychology is not based on scientific psychology but just lot of ra ra self help stuff.
If you want to improve trading psychology study the work of Albert Bandura , he is ranked 4th in all time greatest psychologist.
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.
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.
This is an example of understanding market structure and making money from it
This was my recommendation for yesterday in newsletter
Daily Money makers for tomorrow : TSLA TTD SOXL
From the newsletter SOXL was pre identified day trade opportunity.
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.
This is an example of understanding market structure and making money from it
This was my recommendation for yesterday in newsletter
Daily Money makers for tomorrow : TSLA TTD SOXL
From the newsletter SOXL was pre identified day trade opportunity.
3 gap ups in a row. Stocks like these in short term mean revert. High probability market behaviour. Was expecting it to fade. Planned the trade early morning.
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