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You Can Only Change What You Can Control In Trading
Most successful businesspeople I know are control junkies. While hard work, persistence, and discipline have led them to their path of greatness, they also feel the need to control themselves, others, and their surroundings. As a trader, you will find, very quickly, that you are only able to control one thing: yourself. When money is involved, thats a difficult realization, but its the truth. You will never be able to control the market the way you may let it control you. The markets are uncertain, and change from day to day, if not hour-to-hour. Theres no controlling that.In his book, The Disciplined Trader, Mark Douglas requires traders to do a thorough mental house cleaning of deeply rooted concepts and traditional thought processes and how to develop and apply attitudes and behaviors that transcend psychological obstacles and lead to success. An elite few have learned how to control their trading behavior by developing a systematic, step-by-step trading approach. One area you can certainly control is the way you approach risk. When you control risk, you may not guarantee a win, but youll know that you can survive a worst-case scenario.If you accept the uncertainty of the markets and soon, youll understand what you can actually control. And when you feel free, creative, and in control, you will trade more profitably. Trading with discipline means being able to hold to your beliefs, being able to stick to your trading principles, and being able to feel completely empowered regardless of the outcome. There will be times when you will be perfectly disciplined and the result will be anything other than profit. There will be times when discipline might mean you refuse to take a large risk that pays off in the end for many other traders. But discipline also means that you would be able to make enough self empowered trading decisions to counteract or balance out those times when your discipline seemed to be working against you.Does that mean that a disciplined trader never goes off task for a moment or never makes a decision based on new information that goes against their initial plan? Of course not. We are not talking about building trading robots but we are more interested in creating a place of self trust and empowerment that allows us to make strong decisions when it comes to our ability to interpret the information around us. When we can do that, then we know we are creating our own path to success and that we are doing it in a way that is completely comfortable for us.
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