Be Flexible

Discipline is saying ‘I’m wrong. I’m getting out of the stock and actually doing it. Sometimes you’ll be long a stock and all of a sudden it’s falling. Undisciplined people get stubborn and say, ‘It’s going to go up’ or ‘It’s going down, I’ll buy more and eventually it will go back up.’ The discipline to admit when you are wrong, get out, and not take a big loss is what makes a great trader.”

Winning traders are flexible. They look at a trade from different angles and they are not afraid to explore every possibility. They know they may be wrong, but being wrong doesn’t bother them.

Indeed, they often expect to be wrong. The willingness to admit you are wrong gives you power and freedom. When you are willing to admit you are wrong, you won’t be defensive.

You’ll feel relaxed and will effortlessly close out a position when you need to. You won’t fruitlessly hold on to a losing position and hope that it will turn around. You won’t let your emotions of fear and greed take you on a roller coaster ride of emotions as your accounts balance dramatically rises and falls. When you are flexible, you’ll trade more effortlessly.

You’ll stay objective and be able to astutely read the stock markets more accurately.

And in the long run, you will trade more profitably.

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