2008-07-07: Daily decision making - a question of discipline
The challenge of controlling your emotions and confidently make buy and sell signals may be just as much in focus as technical systems and indicators. When your system produces results that fulfil your profit goals, stick to the system and the probability of success increases.

To maintain discipline may be a challenge for many a trader. This is usually a question of risk management. The unwillingness of letting go of a bad trade is often hard to conquer. Hence, many successful traders see discipline as the answer to gain profits. A good money management system together with historically sound strategies may be a beneficial tool.

In the profession of trading, failure can be expected more than half of the time. To deal with bad trades is part of the job. The understanding of having to exit a bad trade before it gets worse is essential. The need to park ones ego and not to dwell on bad trades are daily ingredients in every trader’s working day. The cost of losses is simply a part of the cost involved in trading. However, decision making can be felt as a struggle in today's markets.

There is no such thing as perfection in trading. There is no flawless strategy operating in an ideal market. However, this does not mean that you will not be profitable. To be successful you need to apply a trading style that you find comfortable. Together with a system you believe in and markets that offer the opportunities you seek, you may accomplish the reward goals you have set.

Your expectations are determined by your system’s statistics. A system with historical information collected from real trades gives you relevant information of what to anticipate in the future. Appropriate expectations prevent disappointments. The market moves in trends, but periods of drawdown also seem to be inevitable. By understanding the probability of losses for the system you are using, it may be easier to accept the rate of failure and focus on the profit opportunities.