8. Discipline by xanderhorwitz on GoAnimate
This section builds directly off of the last one because it reiterates the fact that we are not gambling when we are trading. Your personal opinion and emotion must be left at the door. The only thing you should be looking at is the levels on your chart. There is nothing more dangerous than a trader with emotion. Sure he/she will pick a few winners here and there, but in the end there is nowhere to go but in the direction of financial ruin. Nobody can out guess the market, nobody. That’s why our trading revolves not around guessing, but calculated risk. When we make a trade, it’s because we see something in the chart. The chart gives us an action and we must react, not with emotion but with calculation. The importance of trading without emotion ties into your stop orders as well. Never adjust your stops for the wrong reasons because you think the stock might do something. The most dangerous words in trading are “this time will be different.” If we can honestly stick to the principles of the last two chapters we are on our way to becoming successful traders.