This is probably the most recurrent concept mentioned in trading literature, but what does it mean exactly? “Discipline is any training intended to produce a specific character or pattern of behaviour, especially training that produces moral, physical, or mental development in a particular direction”*, i.e.: to be disciplined you need a specific set of rules to follow. Without rules, discipline is an empty concept!! In order to be disciplined, a trader first needs to set the rules that he will need to follow. Here we come back to the necessity of first working out a methodology, and then applying the rules to make the most out of it. This is usually called the “Trading Plan” and it is the foundation of any successful trader. Many would-be traders find it hard to write down a specific trading plan since it is very far from the typical “easy money” illusion that many people have about trading. Being able to articulate a precise, step-by-step plan is the result of intensive study and research of the markets behaviour. Once this intensive observation period has produced some trading ideas, it is time to test the concept through back-testing, and even more importantly in real-time. Any trading approach can and must be tested, be it a fundamental, supply/demand model, a quantitative system or a technical analysis methodology. Once the tests have confirmed that the strategy has a demonstrable edge, the real difficult part begins, and this is the systematic application of this edge to the markets. One of the major issues facing the trader once he has formulated a strategy is to make sure that his personality and organisational availability will be in accordance with the execution of this plan. It will only be through the continuous practice of the trading plan that the trader will gain confidence in his ability to execute it flawlessly. Markets have a way to spot any of our psychological weaknesses and only the focused and intense practice of the trading plan will produce the consistent pattern of behaviour that characterizes successful trading. This is the necessary discipline that can lead to confidence!!