Lately I had a student whom are not that discipline in terms of personality and his trading concept. Very stubborn possibily of egoistic feature on his character, which may he did not even realise it. It seems it naturally evolves on and around him. I ask a couple of times of his trade plan and be transparent. The things I don’t like when teaching someone that they hide their problem and only show their short success in trading.
Trading at the feel of the moment and mental planning out of the moment is far dangerous and thus can deviate from his original system and in turn become the discretionary trader. He did argue, even in writing , he never follow his plan. The purpose of Trade planning is to reduce or to take away the equation of psychological trading. By following a rule base plan, he is able to discpline his trading. Of course this will take a while to develop and nurture. But in the end, it is a record of his personal performance and aptitude of self discipline. This include his losses and winning. From there he can evaluate or self evaluation on to improve and to avoid repeating the same mistake again and again.
The Thought of changing the mindset of a student into a discipline trader will take a while, whilst other part of trading roles are easy to master skilfully or experience through massive backtesting.
Question should be ask when you trade are:
1. what pair are you trading ?
2. What time frame ?
3. Why ?
4. Risk ? how much to lose ? what position size ?
5. Entry and exit ?
6. Reminders ? Do’s and DOnts
7. Review or evaluate after trade.
Make it routine.