Day Trading Accountability
Day Trading Accountability: I recently spoke with a trader who told me he has been having problems with discipline in his day trading. He knows how to trade, he knows the setups he’s looking for in the charts, when to enter, and when to exit. The trouble he is having is with his Day Trading Accountability and the discipline to wait for only those setups and not to take lesser trades in the meantime.
This issue is the most common amongst day trading accountability from trader to trader, I imagine everyone goes through it at some stage in their trading career. In working with all level of traders over the years, I have noticed a phenomenon that I think explains one of the reasons for this lack of discipline. When I watch traders trade, they tend to sit very patiently and explain to me what they are seeing on the chart. When they see a valid setup come along, they can tell me what the setup is and how they plan to trade it, and subsequently they will execute the trade according to their plan. When the same student is trading alone, they start taking all sorts of one or two off trades, setups that aren’t really setups at all, just excuses to trade. It seems that the difference when trading alone, is that the trader suddenly has no day trading accountability. If they have someone looking over their shoulder baby sitting them, everything is fine. The only problem is WHY? They know that if they take an off-plan trade then they will have to explain to me why they did when it all goes wrong. Trading remotely, the trader is accountable only to themself, and they are probably not going to give themself the same hard time I would if they didn’t follow their trading plan to the letter!
Day Trading Accountability
So it seems that one of the benefits of trading for a living is having Day Trading Accountability , the independence from the boss, can actually be a hindrance at times. Short of hiring a baby sitter to stand and watch over them, what can a trader do to overcome this lack of day trading accountability in their trading? One method I recommend is to talk the trade out loud to yourself throughout the trading session, as if talking to a mentor. Explain to yourself what you are seeing on the chart, where you think a trade is setting up and why, how you will enter, how you will manage the trade, and where you will be exiting wherever the price eventually goes. When talking out loud you use a different part of the brain than when simply thinking to yourself, and that can have surprising benefits; it’s easy to talk yourself into a trade that you want to take even though you know it’s not quite right, but talk through it out loud and you’ll hear yourself making excuses and quickly see the error you are about to make. I know talking to yourself sounds a little odd, but guess what? It works.
Another option for Day Trading Accountability is to join a chat room. There are loads of them out there, plenty of free ones as well as some paid ones which call trades in real time . If you find a decent room and commit yourself to calling your trades in real time, knowing that you will have to explain to the room exactly why you just took that really stupid trade will really make you think twice about taking it in the first place. Day Trading Accountability.
These are two simple ways of having Day Trading Accountability for your trades and therefore enforcing more discipline. There are many more interesting ways of increasing disciplines. I will come back to Trading Education Blogs with more on bettering yourself as a trader and having what we senior traders call Day Trading Accountability.