Friday, August 29, 2008

Masters Of Excellence - Doug Goeckel


This is the 2nd in a continuing series of articles.

This week I will be expanding on Discipline.

As professional traders we must focus on mastering mental self discipline. Many traders that desire to be successful find themselves frustrated and feeling as though they have failed. As I began teaching traders, I found that there was a gap between successful professional traders and those that wanted to be successful. One main area that I noticed traders lacked in was the area of discipline. We live in a world of rules and regulations, then people with a true desire to be successful come in and begin (what I have coined ) cowboy trading. Cowboy trading is trading without rules or structure. Trading without a structure is damaging to the mental psyche. Take the example of the Bible. It is filled with guidelines and structure that allow our lives to be filled with joy and freedom, but the path of righteous living is narrow. The Bible is filled with motivating and compelling rules that produce self discipline. Trading is quite similar. Discipline yourself into success. Disciplined trading will lead to a life of abundance.

You must be willing to create a set of rules and guidelines and follow them.
Do you have a Business Plan?
Do you have a high probability trade that states specifically when you will trade and when you will exit a trade?
What do you do on a daily basis to prepare for your trading day?
Do you have daily procedures?
Have you made it clear exactly what markets you will trade?
Do you have a set time that you designate to trading?
How do you manage your trades?
Do you journal every trade you make? Most professional , successful traders do !
What specifically are you looking for when to enter a trade?

**These are just a few of the specific rules that will promote mental self discipline

If you are willing and obedient, you will eat the best from the land.
Isaiah 1:19

First you must be willing. Are you willing to do whatever it takes to succeed at trading. From my years as a trader, I have learned the hard way that trading is 90 – 95% mental discipline. I had to make the commitment to be willing to take the next step. I had to break thru instead of break down. I never thought that committing to be a professional trader would be such a great endeavor, until I went through it.

It is essential to master self discipline. A professional trader must follow their structure and set of trading rules in all circumstances. Those that choose not to follow their structure and trading rules once will do it again and again. I place a great emphasis on the fact that you must honor yourself. You must follow your rules on a daily basis. It is the unseen discipline that separates the professional traders from the rest.

Douglas Goeckel

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