5. Control

This leads on to the next factor of control. It is not easy to control your behaviour when you are sat at the computer on your own. You must have control because you can be drawn into the world of gambling. Trading is exciting, the movements, the money you are making, the banter on forums or the squawk you have in your ear. But if you feel excited about individual trades you are in the wrong trade. It is acceptable to get enjoyment out of trading. Trading should make you a happy person but that is because you are excited about closing the trade when you have been in complete control of all your principles, rules and have closed for a profit. Getting excited if your analysis has worked even if your trade failed, sounds unintuitive however, if you have followed all your principles and rules then you are beginning to act like a professional trader. And a professional trader is always prepared to accept a loss as long as it falls within the parameters of their rules of risk/money management. Because then then can survive to trade another day and know next time it has a chance to succeed.  Control gives you the sense of calm and the knowledge that you are doing everything right to give yourself the best chance to make consistent wins and accumulate those pips so you can fulfil your dreams of financial freedom.

6. Patience

Finally, patience. Patience is the hardest aspect to obtain, patience that trading is a long game, and will take a while to master, all the way to patience within the trade. You have to let your process playout. Your principles will protect you; however patience will stop you from tinkering and hovering over the mouse and not letting your profits run. Do not rush and remember this, reason everything out from principle and rules and when you are within your trading plan and want to take the trade take a pause and just re-evaluate. This will ensure you are certain all is well and you are committed to executing your plan. The lesson of calmness and patience will accumulate pips. 

There is no holy grail in trading, consistency is the only path to success to slowly and surely build an attitude of discipline and control to give you the opportunity to accumulate pips. This will reinforce your mind-set of winning which will help you to form habits that will make your rules involuntary and this is what will lead to consistency and all the freedoms you can imagine. Add to that the lifestyle change you want for yourself. Move away from this and it leads to swings of big wins to big losses which lead to fatigue and failure. Therefore stick to the path of consistency and ignore all the marketing noise so prevalent in this industry and commit to a plan that will lead you to trust yourself to pick the correct information and knowledge, to make you a success.

Simon Cotterill
Technical Analyst
Day Trade Ideas