So much attention and instruction given to new traders these days stresses discipline.
There is no question that discipline will dictate your long term success or lack of
discipline will determine your short term failure when it comes to trading. There is the
discipline to admit when one is wrong in a trade and take the corresponding action to exit
the position. There should be discipline to cut losses quickly. As well, ones discipline
should keep them from averaging down on positions when this is not one’s original
gameplan.
One discipline that fails to receive the same level of commentary as the ones we have
mentioned; is the discipline to stay in a trade that is going ones way. This is actually
more of a difficult situation to quantify and more of a skill that takes time to feel
confident with. It sometimes involves years of trading and exposure to the markets
to get that true feel. The common phrase is referred to as “ Letting Ones Profits
Run “.