Jon - "How do you discipline yourself".
Unfortunately, there isn't an easy answer, or way, to do this. It usually comes from experience of what can happen if you do not use your discipline. The market is no place for "hopes and dreams" trading and investing.
This is exactly what I do when I enter a trade:
1) Firstly, remember my $500/day goal. And say "Don't get greedy".
2) Pick an entry point, and then ...... wait. Just a bit to see.
3) Place the limit order to buy or short.
4) As it is executing I have already judged, realistically, where I feel this issue can go ... whether it is a 1/4, 1/2 or 1+.
5) I also determine, how much I am willing to lose and set a mental stop.
6) Then I step back and watch the price action and volume.
7) If it immediately turns against me and hits my stop, I sell.
8) If it runs up to my goal, and starts churning, I sell.
9) If it runs beyond my goal, I will set another mental stop or physical stop at some point near my goal to lock in and protect my gains.
10) If the issue runs to close to my goal and starts to retrace, I sell immediately, especially if it is on volume.
11) I "try" to follow this each time, but the most important step of all of these is.....
#1
It is too easy to get lost in the $4000, $5000, or $6000+ gainer ... and then try to recreate that on a daily basis. Have been there. I have learned to keep myself in check on those days, appreciate them for what they are, pat myself on the back for making a good decision and remind myself again not to get greedy.
A $500/day goal is still roughly $125,000/yr. Not everyone will be able to use this goal because of limited trading capital.... but everyone needs a goal, as long as it is realistic. If you are trading 100-200 shares at a time, it is not realistic to think that you will make $500/day .... I would then recommend weekly goals or scaled down daily goals. It is all relative.
Learn to be happy making a little bit at a time and then look back on your progress after a month. You will see that, although not as exciting as the big kill every day, it is much safer, nearly as exciting, and helps you get to sleep quicker.
Gone for me are the 5000 and 10,000 lot trades. They may be back, but I really enjoy changing my strategy to fit the market, or trying new trading theories. But right now, I found that balance and it feels pretty good.
I think you will too.
Good luck
Tj |
