Many people get lost in the whirlpool of trading, as if wandering in an invisible labyrinth. The foundation of the market lies in uncertainty, not in terms of possibility, and this concept is like materialism and consciousness in philosophy, which is the cornerstone that traders must deeply understand. Once this core principle is ignored, all subsequent efforts can lead to very different trading results, like a blind man touching an elephant and it is difficult to reach the truth.
1.Trading discipline is paramount
What is the most important and difficult part of trading? Some people may say that the market is very important, but it is the most unlikely thing! It is in this unsolvable mystery that many people fail.
The market is based on uncertainty, not desirability, which is a crucial trading issue, equivalent to philosophical materialism and epistemology. If this is not understood, all the next efforts will lead to a completely different trading outcome.
On the premise of accepting the inadmissibility of the market, we ask again: what is the most important and most difficult thing in trading? My answer is: Be disciplined! Discipline is the most important thing! Discipline is the hardest! Discipline is more important than anything else! Discipline is a guarantee of profitable trading!
In trading, all actions should be governed by discipline and not based on personal judgment of the market. Effective discipline must be built on a rigorous trading system, trust the trading system you approve of, not your instincts.
The premise of discipline is that there must be effective trading rules. It is not difficult to get effective trading rules and can be found in any book about trading. Once you have the rules of trading that work, the rest of the job is to be disciplined and enforce the rules, rather than breaking them with personal analysis and judgment. Rules formed over a hundred years cannot be negated and innovated by a few days or years of trading experience, as the classic says: "There is nothing new under the sun".
2.The importance of discipline
Discipline is not just a constraint, it always keeps us safe. While undisciplined profits can sometimes be made, they are temporary and unsustainable. Discipline brings long-term and stable returns, and you must not lose a big one.
The root cause of investors' difficulty in discipline is that they don't really understand the importance of discipline. They are often confused by short-term fluctuations, injured by discipline, or gained short-term benefits by being undisciplined. This confusion causes many investors to lose themselves and eventually disappear into the waves of the market.
3.The essence of discipline
At no time should you trade without the market giving you an entry or exit signal. You can draw a judgment about how the market is likely to rise or fall based on the information you have, but don't act ahead of your time. You have to wait for the market to confirm your judgment before you can take action, and that's the core of discipline.
Discipline is not a simple matter, but a task that requires full cooperation. Adapting to one's own trading system and effective trading rules is the premise and foundation of discipline. Many people don't have their own trading systems and rules, so they can't talk about discipline, but there are no rules.
4.A combination of discipline and practice
Trading discipline is not just a theoretical concept, it needs to be tested and reinforced in practice. Investors should always remind themselves that discipline is not to limit their actions, but to make themselves more stable and survive in the market for a longer period of time.
In practice, investors need to constantly learn and improve their trading skills in order to better understand and apply trading discipline. At the same time, they also need to constantly adjust and improve their trading systems and rules to adapt to market changes and their own development.
Only by constantly groping and summarizing in practice can investors truly understand the importance of discipline and integrate it into their own trading behavior. Only in this way can they achieve long-term and stable returns in the market and achieve their investment goals.
5.Conclusion
Adhering to trading discipline is an important guarantee of investment success. By understanding the uncertainty of the market, establishing effective trading systems and rules, and constantly adjusting and improving them in practice, investors can gradually develop the awareness and habit of abiding by discipline. This will help them stay calm, sanity, and patience in the market and avoid blind actions and emotional trading.
Finally, investors need to keep in mind that trading is a long-term process, not a one-time gamble. Only by abiding by discipline and investing steadily can we go further and be more stable in the market.