Glossary
Trading discipline
What is trading discipline?
Trading discipline is the ability to follow your own plan when pressure makes breaking it feel reasonable. It is not motivation or willpower, it is a system that holds at the moment the rule is most tempting to move.
Example
Your rule is no second trade within ten minutes of a loss. Discipline is whether that rule still holds when you are down and the next setup looks perfect.
Why it matters
Edge only pays if it is executed. Discipline is the difference between a strategy on paper and the trades you actually take.
Common signs
- Rules move in the middle of a trade
- One break leads to abandoning the whole plan
- You know the rule and break it anyway
- Following the plan depends on your mood