Core Values

[junkone]

What are some of the core values of a disciplined trader?

 

[Redneck]

Be totally honest with yourself – always

Listen to (be swayed by) no one

Be humble

Willingly admit when you’re wrong

You don’t know a thing – accept that

Defining and following a process – is everything

Always do what is necessary – above all else

When trading – nothing else matters – allow no distractions (all be they internal or external)

The only goal – protect capital first – make money second

Keep things simple

RN

 

[syntrader]

RN's got it covered.

although i might add courage, because that's what it takes to be totally self-honest.

Quote from Redneck:

Be totally honest with yourself – always

Listen to (be swayed by) no one

Be humble

Willingly admit when you’re wrong

You don’t know a thing – accept that

Defining and following a process – is everything

Always do what is necessary – above all else

When trading – nothing else matters – allow no distractions (all be they internal or external)

The only goal – protect capital first – make money second

Keep things simple

RN

 

[abattia]

RN's summary looks great!

But what does the following mean? Can you expand on this?

Quote from Redneck:
... Always do what is necessary – above all else ...

Thanks

 

[Redneck]

Quote from abattia:

But what does the following mean? Can you expand on this?

Thanks

Yes Sir Ree Bob...

Btw – agree it’s a pretty ambiguous/ all encompassing sentence… but/ and; with the respect to the business of trading there are many things we must do – always…, continuously…, and consistently

============================================

So how bout I limit my breakdown to the OP’s theme – discipline



The always do what is necessary;

Market is uncertain – to stand any chance of longevity – and/or to create any sort of consistency – we must have a consistent trading plan / process/ approach

Doesn't need to be complicated – but it does need to be constant (of course modified as/ if necessary only during off hrs)


We must apply above said plan/ process/ approach – consistently – day after day.., month over month.., year after year

(Btw doing this has an inherent edge few recognize)


We must approach each day with a neutral bias (centered if you prefer) – and allow price to develop the bias we but follow


Losing Trades;

We must keep them, occasionally equal to our winners.., but by in large – smaller than our winners

We must accept losing easily


Winning trades;

We never know how far (or even if) price will move in our direction.., or if price will end up retracing to give us a loss – we must manage every wining trade to the absolute best of our ability – every time

Both losers and winners – we must accept each equally.., maintain emotional / psychological equilibrium – and simply move on to the next trade

We must maintain patience and focus – which btw begets discipline (which must also be dutifully and consistently maintained)

There are times to stay out of the market – thusly we must do so every time it is required

Setups – we must take every one – fore even though the last “how ever many” trades were losers – the one we don’t take – is the one that would have made up for all the losers – and put us in the black (profitable)

(again taking every set up is an inherent edge few recognize)


Uncertainty – we must learn to accept it completely (which is easier said than done… and very easy to fool oneself that they have) – and become comfortable enough to function… and ultimately thrive in it


Always have complete humility / openness (market does change) / willingness to learn / willingness to change

Always take full and complete responsibility and accountability – never make excuses

And this list could go on and on – but I think the above is a decent sampling





Finally the above all else...

Every human emotion, want, need and/ or desire – possible (real or imaginary) (and more on emotions in a bit)

Life

Shocks to the mkt/ black swans

Anything…,and everything.., (trade long enough it’ll happen)


Must never allow anything to sway us from the task at hand – which is;

Trading with a consistent plan/ approach/ methodology… taking every set up… keeping losers equal to (sometimes) and smaller than (most times) the winners

While never missing a beat – no matter if we’re pissed off, happy, sick, up, down, or sideways (or ate Mexican food the night before – little humor as I love Mexican food)

=======================================

A comment on emotions/ being human

I don’t think a person can set their emotions (humanness) aside and trade like a robot – impossible to be what you’re not…

But; if you come to accept and embrace your shortcomings/ frailties – then a person can do what is required in spite of their emotions (humanness)

There are many non trading examples of people doing exactly that every day

================================================

Something to ponder;

We can bullshit (fool) each other… we can bullshit (fool) our friends…, our family…, even our self

There never has been.., is…, or will be – a trader – who can bullshit their PnL



RN

 

[sle]

* Share everything.
* Play fair.
* Don't hit people.
* Put things back where you found them.
* Clean up your own mess.
* Don't take things that aren't yours.
* Say you're sorry when you hurt somebody.
* Wash your hands before you eat.
* Flush.
* Warm cookies and cold milk are good for you.
etc...

 

[Redneck]

Quote from sle:

* Share everything.
* Play fair.
* Don't hit people.
* Put things back where you found them.
* Clean up your own mess.
* Don't take things that aren't yours.
* Say you're sorry when you hurt somebody.
* Wash your hands before you eat.
* Flush.
* Warm cookies and cold milk are good for you.
etc...

And your point is

Hesitant to jump to a conclusion that this is some passive aggressive commentary - we'll see

RN

 

[Wide Tailz]

Quote from junkone:

What are some of the core values of a disciplined trader?

1. Risk Management

2. Risk Management

3. Risk Management

4. Edge

 

[sle]

Quote from Redneck:
And your point is

That there is no "core values" that contribute to success in trading - it's a profession, albeit with a little more decay in the skill set then your average carpenter.

 

[junkone]

This is awesome. Exactly what i was looking for. Thank you so very much.

Quote from Redneck:

Yes Sir Ree Bob...

Btw – agree it’s a pretty ambiguous/ all encompassing sentence… but/ and; with the respect to the business of trading there are many things we must do – always…, continuously…, and consistently

============================================

So how bout I limit my breakdown to the OP’s theme – discipline



The always do what is necessary;

Market is uncertain – to stand any chance of longevity – and/or to create any sort of consistency – we must have a consistent trading plan / process/ approach

Doesn't need to be complicated – but it does need to be constant (of course modified as/ if necessary only during off hrs)


We must apply above said plan/ process/ approach – consistently – day after day.., month over month.., year after year

(Btw doing this has an inherent edge few recognize)


We must approach each day with a neutral bias (centered if you prefer) – and allow price to develop the bias we but follow


Losing Trades;

We must keep them, occasionally equal to our winners.., but by in large – smaller than our winners

We must accept losing easily


Winning trades;

We never know how far (or even if) price will move in our direction.., or if price will end up retracing to give us a loss – we must manage every wining trade to the absolute best of our ability – every time

Both losers and winners – we must accept each equally.., maintain emotional / psychological equilibrium – and simply move on to the next trade

We must maintain patience and focus – which btw begets discipline (which must also be dutifully and consistently maintained)

There are times to stay out of the market – thusly we must do so every time it is required

Setups – we must take every one – fore even though the last “how ever many” trades were losers – the one we don’t take – is the one that would have made up for all the losers – and put us in the black (profitable)

(again taking every set up is an inherent edge few recognize)


Uncertainty – we must learn to accept it completely (which is easier said than done… and very easy to fool oneself that they have) – and become comfortable enough to function… and ultimately thrive in it


Always have complete humility / openness (market does change) / willingness to learn / willingness to change

Always take full and complete responsibility and accountability – never make excuses

And this list could go on and on – but I think the above is a decent sampling





Finally the above all else...

Every human emotion, want, need and/ or desire – possible (real or imaginary) (and more on emotions in a bit)

Life

Shocks to the mkt/ black swans

Anything…,and everything.., (trade long enough it’ll happen)


Must never allow anything to sway us from the task at hand – which is;

Trading with a consistent plan/ approach/ methodology… taking every set up… keeping losers equal to (sometimes) and smaller than (most times) the winners

While never missing a beat – no matter if we’re pissed off, happy, sick, up, down, or sideways (or ate Mexican food the night before – little humor as I love Mexican food)

=======================================

A comment on emotions/ being human

I don’t think a person can set their emotions (humanness) aside and trade like a robot – impossible to be what you’re not…

But; if you come to accept and embrace your shortcomings/ frailties – then a person can do what is required in spite of their emotions (humanness)

There are many non trading examples of people doing exactly that every day

================================================

Something to ponder;

We can bullshit (fool) each other… we can bullshit (fool) our friends…, our family…, even our self

There never has been.., is…, or will be – a trader – who can bullshit their PnL



RN