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How to play the game

Blog - How to play the game


Discipline - It's Learned

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Perhaps the subject of this week’s blog - Discipline - elicits memories from your childhood, perhaps mummy or daddy giving you a smacked ass or a clip around the ear, or perhaps it brings back some incredible sporting memories of disciplined performances.

Maybe the contrarian thinkers among you might be pondering the occasions when you DIDN’T obey the rules, but you liked the disciplined consequences… the word can bring a multitude of scenarios to the table, but when we try to rationalize discipline in the Financial Markets, it really comes down to 1 thing, and 1 thing alone, and this is the subject of this week’s blog post.

You see, the thing about the Financial Markets is that they seldom reward ill-discipline.

Hands up in the air, those of you that have jumped into a position without giving full consideration to the potential outcome?

My hand is certainly up… I think if most of you, if you were being candid with yourselves, would acknowledge, that there’s a place and a time where you messed up badly with the money you put on the table… maybe you kept buying the dip on Alibaba (at time of writing China is in bear market thanks to the Trade War), and you wondered why price isn’t rebounding and keeps reversing against you… or maybe you kept buying a stock that didn’t have direction and didn’t understand the Technical side of things… it’s likely a couple of areas that are hindering you… 1. Knowledge and 2. Discipline.

The distinction between the 2 is often blurred, but they can be explained in a couple of quick after thoughts.

  1. Knowledge is taught

  2. Discipline is learned

In order to be successful in the Financial Markets, it isn’t a stretch for me to say, that one must be an independent thinker.

If I was to sit here in my lounge in rainy Scotland, and tell you that my style of trading is the only style of trading that works… I would have zero credibility, and those of you that follow me closely on my various platforms will already understand that I have a style of Trading that works on multiple levels, and it’s an art which I’ve been fortunate enough to master … with no ego, I think it’s fair to say, the 1 thing that sets me apart from most traders you’ll come across, is that I’m happy to sit on the sidelines for a month or 2 if the Market conditions aren’t appealing to me… many traders simply can’t understand this. and think… well how can he be successful if he rarely trades…. and this my friends, swings right back around to the key word in today’s blog - discipline.

The Guide to becoming a disciplined trader is actually pretty simple… if you’re uncomfortable with overall market conditions…. if the volatility is too high… if you’re consistently taking bad positions in the market time and time again…. it’s easy to rectify… stand aside… don’t trade… assess your flaws… back test your decision making… learn… remove the fear of missing out (FOMO)… and go back to it when you’re confident - DO NOT TRADE FOR THE SAKE OF TRADING!

I know from the volume of emails I’ve had over the last 12 months, that I’ve had an impact on many of you (something that makes me swell with pride)… but you must also understand something - if you’re a trader with inconsistent results, and if you’re a trader who wants to improve, the only way to get better, is to align with a style, and to align with a group of World Class Traders… this is what I provide.

My weekend Stock Market webinars, and my Half Time reports (whilst incredibly enlightening and give many great opportunities every single week), are designed for a purpose, to engage my audience, drive traffic to my website, which then drives incredible conversations with incredible people around the world who then want to learn what I teach.

My track record on my website is also published for a reason, and this boils down to transparency…. I want the world to see what I’m posting into my community because I’m looking to raise the bar… and although the community also get the benefit of my trade ideas at the weekend etc… I know the reality is that out of perhaps 25 stocks analyzed… maybe 5 or 6 of them will truly be appealing to me and the group on any given Monday / Tuesday morning, and quite frankly (like the last 2 weeks really)… sometimes NONE of them are appealing, and for those that don’t understand positive / negative Market conditions and those who jump into every free trade idea presented in front of you, might want to take a back seat for a while to learn the approach you wish to master, because it really is a recipe for inconsistency.

Let me ask you a question

if you could learn a style of trading that given you Technical knowledge, and were also part of a group who have discipline (I know 1 or 2 of my guys/gals are still working on discipline)… but how would that potentially change your results?

Trading isn’t easy… but it can be made simple… there’s certainly a clear distinction - I hope you understand this… and for me, and my approach… discipline / rules / trading plans / technical knowledge and an understanding of price - has helped me immeasurably… but I also know there are many approaches to the Markets.

If you’re interested in education and you struggle with your trading results… we’d love to hear from you.

Time for the next level?

Sam McCallumComment