Accountability In Trading

I recently heard from a trader who told me he has been having problems with discipline in his day trading. He knows the way to trade, he knows the setups he must be trying to find within the charts, when to enter, and when to exit. His trouble is in having the discipline to attend for less than those setups and to not take half baked trades within the meantime.

This is a really common problem for traders, I imagine everyone goes through it at some stage in their career. In working with student traders over the years, I even have noticed a phenomenon that i feel explains one among the explanations for this lack of discipline. When I watch student traders trade, they have a tendency to take a seat very patiently and inform me what they're seeing on the chart ahead of them. When they see a legitimate setup come along, they will quite happily tell me what the setup is and the way they decide to trade it, and subsequently they're going to execute the trade accordingly. When an equivalent student is trading alone, they begin taking all kinds of off-plan trades, setups that are not really setups in the least . It seems that the difference when trading alone, is that the trader suddenly has no accountability. If they need someone looking over their shoulder keeping them in restraint , everything is ok . They know that if they take an off-plan trade then they're going to need to inform me why they did so when it all goes horribly wrong. Trading reception alone, the trader is accountable only to themselves, and that they are probably not getting to give themselves an equivalent hard time i might if they didn't follow their trading plan to the letter!

So it seems that one among the advantages of trading for a living, that independence from the boss, can actually be a hindrance sometimes . Short of hiring a manager to face watch them, what can a trader do to beat this lack of accountability in their trading? One method i like to recommend is to offer a running commentary aloud throughout the trading session, as if lecture a mentor. Explain what you're seeing on the chart, where you think that a trade is fixing and why, how you'll enter, how you'll manage the trade, and where you'll be exiting wherever the worth subsequently goes. When talking out loud you use a different part of the brain than when simply thinking to yourself, and that can have surprising consequences; it's easy to talk yourself into a trade that you want to take even though you know it's not quite right, but talk through it out loud and you'll hear yourself making excuses and quickly see the error you are about to commit. I know lecture yourself sounds a touch odd, but it really works.

Another option for making yourself more accountable for your trades is to join a chat room. There are a lot of them about, many free ones also as some paid ones which call trades in real time (I wouldn't recommend those by the way, they are often travel by people front running their own calls). If you discover an honest room and commit yourself to calling your trades in real time, knowing that you simply will need to inform the space exactly why you just took that basically stupid trade will really cause you to consider about taking it within the first place.

These are two simple ways of making yourself more accountable for your trades and therefore enforcing more discipline. There are more interesting ways of accelerating discipline as a private skill, and that i hope this text will have given you some ideas to start out developing your own methods.

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