Trading discipline lapses occur when a trader deviates from their approach.
Fear, greed, enthusiasm, or impatience might cause this.
Lack of experience, poor risk management, or not following guidelines can also cause discipline issues.
Traders that lose discipline may overtrade, take unnecessary risks, or ignore stop loss orders.
This can cause large cash losses and trading account harm.
Even in challenging market conditions, traders should stick to a well-defined trading plan to avoid discipline lapses.
They should also control their emotions and be objective.
Traders should also review their performance and change their trading plan.
Trading discipline takes practise, self-awareness, and consistency.
Discipline and following a strategy can help traders succeed and prevent expensive mistakes.