The psychological side of trading (II): developing an iron discipline

The psychological side of trading (II): developing an iron discipline

Discipline can turn out crucial in trading. Learning how you can organize your daily trading activities should become one of your first goals in the financial world.

In the second part of our series entitled "The psychological side of trading," we will cover another major topic: trading discipline.

A solid trading discipline can prove invaluable for upcoming and skilled investors alike. However, there are several obstacles you need to overcome in your quest to improve your results in the #trading #arena.

Time to get into details, shall we?

Don’t start without (minimum) preparation & practice

Whatever you do, don’t jump into trading without the minimum knowledge regarding this industry. We're talking about online videos, educational articles, and market news – all contributing towards your general market awareness.

Experienced traders know how important it is to educate themselves continuously. The markets are always changing, with new things frequently coming up. Developing a daily routine of checking out the latest market developments also helps build the trading discipline anyone should have. It all depends on you: some traders spend more time reading the news and events, while others allocate less time for these activities. The important thing is making a habit out of this, no matter how many hours you decide to invest in this.

Here at, you can find the resources you need to improve your trading knowledge and get ready for live action. Visit the CAPEX Academy to start learning more and become a better-prepared trader!

Planning and setting up risk management orders

Trading requires a plan which you can personalize according to your strengths. If you need help, you can read more about forging a solid trading plan from our featured articles section!

Risk management strategies are also recommended, as they enforce extra protection for your funds. To discover more about them, check out our featured article on market orders!

Tips for improving your trading discipline

After you make sure that you covered all these essential things, you will become more confident knowing everything is in place. Next step in line? Getting ready for live trading.

But before you start, here are some quick-fire tips regarding the subject of improving your #trading #discipline:

  • To get better at anything in life, you need patience, perseverance, and training. Trading makes no exception from this rule. Discipline comes if you learn how to nurture those three things. The more you find out about the financial world, the more likely it is to improve your trading skills. Managing your emotions, reacting promptly and firmly whenever the situation demands it, and sticking to your #trading #plan is all part of trading psychology. And you can learn the most suitable ways of improving those traits with enough study.
  • Keeping yourself motivated requires daily work. Motivation isn’t an abstract concept: it’s a lifestyle, a mindset that needs constant nurturing and attention. For this reason, setting up goals becomes even more critical. Without motivation, you won't reach your trading objectives, and you might get discouraged. Learn how to remain positive and always keep the big picture in mind. Carefully assess the risks, follow-up on your trading strategies, adapt and change where it’s due. Take it step by step, and eventually, you'll get there. To improve your trading, you need to learn how to approach your targets and keep yourself motivated and disciplined.
  • Confidence comes from honing your skills. Mastering your craft takes a bit of time, but once you get into the habit of doing things the right way, the process can speed up. Stick to your plan and strategies. Once you get confident enough with them, you are free to try out new things. Do not attempt to rush things: if you're not ready to implement a new strategy into your trading, don't risk. Remember: discipline and confidence weigh heavily in every trader's life, impacting how successful his actions could be.
  • Try to keep fear & greed under control - for traders, greed can sometimes make traders risk too much when it is not right. On the opposite, fear prevents traders from taking initiative when the opportunity arrives. Just like greed, failing to conjure a trading plan makes traders fearful. Train your mind not to allow your emotions to interfere. Greed and fear must not influence your trading activities. Your decisions need to rely on logic and proven strategies. Keeping a trading agenda to see what worked and what didn't, how individual decisions affected your trades, and what needs improving – that’s what experts advise us to do.

Stay tuned to our Featured Articles section, and don't miss the last part of our series entitled: "The psychological side of trading"!

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