Discipline is the bridge between goals and accomplishment. Jim RohnIf you read enough you've probably heard the saying; "The winning trader is the disciplined trader". What that means in its basic form is you outline a specific trading plan and you follow it. Sounds simple enough, however people differ in terms of their ability to maintain self-control and discipline, especially in difficult market environments. In Neil Simon's play the "Odd Couple" Felix Ungar and Oscar Madison illustrate perfectly the stark contrast between the disciplined and the undisciplined. Felix was the neat freak, everything had its place and everything belonged in its place, Oscar on the other hand was sloppy and impulsive. But even though Oscar was undisciplined he showed signs of discipline in certain areas. Oscar was a well known sports writer and he had to show an acceptable amount of self control and discipline in order to put out his column every day. So even if you are an undisciplined person in terms of personality traits you can show discipline when completing specific tasks. And of course we are talking about the specific task of trading / investing in the markets successfully.
Reprint from a May 2005 PrudentTrader Newsletter