Top Ten Reasons For Loss of Discipline

[ForexArticles]

The following was part of an email that was sent to me. I found the 10 points to be solid and resonated when I look back at the tough times I have gone through (and go through) as a trader. I do not know the author of these points, so if any of you know who it is let me know.

By Cory Mitchell, CMT

Top Ten Reasons For Loss of Discipline

Author unknown

Loss of discipline is not a trading problem; it is the common result of a number of trading-related problems. Here are the most common sources of loss of discipline, culled from my work with traders:

10) Environmental distractions and boredom cause a lack of focus;

9) Fatigue and mental overload create a loss of concentration;

8 ) Overconfidence follows a string of successes;

7) Unwillingness to accept losses, leading to alterations of trade plans after the trade has gone into the red;

6) Loss of confidence in one’s trading plan/strategy because it has not been adequately tested and battle-tested;

5) Personality traits that lead to impulsivity and low frustration tolerance in stressful situations;

4) Situational performance pressures, such as trading slumps and increased personal expenses, that change how traders trade (putting P/L ahead of making good trades);

3) Trading positions that are excessive for the account size, created exaggerated P/L swings and emotional reactions;

2) Not having a clearly defined trading plan/strategy in the first place;

1) Trading a time frame, style, or market that does not match your talents, skills, risk tolerance, and personality.

[Timo]

9) Fatigue and mental overload create a loss of concentration;

Indeed, in todays world, when you have to be in touch almost 24/7, it is a big issue