While the popular image of trading in the movies is fast paced and exciting, the reality for an active trader may be very different. The fact that it requires a lot of discipline and long work hours is often played down in crypto culture to keep the image of lamborghinis and a “rocket ship to the moon” lifestyle alive. In order to maintain their mindset for success, Day traders maintain strict discipline about how they approach their trading day and what they do during their trading session. If a strategy provides five trades a day, that may translate to only five seconds of actual trading activity. The rest of the time is when the need for discipline kicks in. A disciplined trader will sit and watch the screens waiting for trade signals. When a trade signal occurs, you need to act without hesitation, following your trading plan. However, when there are no opportunities that match your plan, wait patiently for them.

For the disciplined trader, a trading day starts with preparing a trading plan, researching the market and creating trading scenarios for the day ahead. After you are done with your trading session, it is time to review your trades, note them down in your trading journal and analyze your behavior. Traders can evaluate their own sense of discipline simply by quantifying the amount of time they dedicate to preparation (creating a trading plan) and keeping a detailed trading journal.

In the end, trading is just like any other skill – a much-touted theory suggests that practising any skill for 10,000 hours is sufficient to make you an expert. With trading crypto, putting in the time and discipline is necessary. The 10,000 rule for mastering a skill is easier said than done. Similarly, following through and exercising discipline within your trading is one of the hardest things to achieve on a regular basis. Simply put: unless you put in the work, you will not come far.

 

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CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.

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