There’s one truth to trading that never changes …
Regardless of whether the market is hot or cold.
This one truth is the backbone of my trading process. And it’s the reason my students and I have pulled millions of dollars from the market.
Here’s the idea … In a hot market, when traders are winning, it’s easy to feel like a genius. I’ve seen some of the most reckless trades that ultimately resulted in profits when everything was spiking.
For example, that’s exactly where we are right now.
The market just made new all-time highs.
Look at the S&P 500 ETF Trust (NYSE: SPY) chart below. Every candle represents one trading day:
But when the market turns, and it always does, those same traders often lose it all.
That brings me to the one truth in the market:
Discipline is non-negotiable.
Long-term success in trading is not about luck. It’s about consistency. And consistency is built on discipline.
I can teach you how to build smart positions in the market.
But I can’t control your level of discipline … That’s up to you.
To become my next millionaire student, it’s essential you understand the areas where your discipline is tested as a trader.
Otherwise, you’ll fall for the same mistakes as countless other traders in the market.
Table of Contents
When I made my first million, while still in college back in 2000, I thought I had it all figured out.
But in hindsight, I was riding a hot market wave.
I didn’t realize what I now emphasize to all my students: Markets change, but your discipline must not.
That’s why, after mentoring dozens of traders to seven figures (and a few to eight), I can tell you that discipline separates the winners from the washed-out.
And after more than 20 years of teaching, I’ve seen five common discipline killers.
Here’s how to avoid them:
#1: Lack of a Trade Plan
Every day, I send my Challenge students a watchlist.
It includes stocks I’m monitoring, key setups, and potential catalysts.
But just because a stock’s on the list doesn’t mean I’ll trade it.
I’m waiting for these stocks to match my trade patterns. I’m not trading blindly.
If you’re trading without a plan, you’re gambling.
- Focus on the watchlist.
- Know your ideal setups.
- Prepare entries and exits in advance.
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And always follow my #1 rule: Cut losses quickly.
#2: Overconfidence
Early in my career, I strung together multiple six-figure months and thought I was unstoppable.
That arrogance led to painful losses.
At this point in my career, I’ve seen market bubbles burst in 2000, 2008, 2021, and smaller directional changes all along the way …
It taught me that overconfidence kills traders.
Confidence is good. Overconfidence is deadly.
Stay humble. Trade scared. Focus on singles, not home runs.
#3: Emotional Trading
The stock market isn’t always logical …
A company’s fundamentals might not change, but the stock could swing wildly based on emotion.
Fear and greed are everywhere. They cause traders to hesitate, revenge trade, ignore rules, etc.
Do you see?
The market can behave illogically because people can trade illogically when their emotions take charge.
Traders who remove themselves from their emotions have an opportunity to recognize these emotional patterns in the market.
Stick to your plan. Respect your stop losses. Trade small if emotions are high.
#4: Lack of Patience
The markets move fast, but that doesn’t mean you should.
You don’t need to trade every setup. You don’t need to jump in and out for every scalp.
In fact, not trading can often be the best move.
Know your favorite patterns.
For me, I mostly look for:
- Morning panics
- Supernovas
- Weekend trades
Know your schedule, too. You don’t need to stare at a screen all day to succeed.
Discipline means waiting for YOUR setups.
#5: Poor Risk Management
In hot markets, you might recover a big loss quickly.
But when it slows down … That recovery could take weeks.
Your wins should always be bigger than your losses.
Never risk a $0.35 drop to realize a $0.20 spike.
Track your stats like my student Andrea Gabrieli does.
Tools like Profit.ly make it easy to analyze your trades and adjust your risk correctly.
Put It Into Practice
Whether markets are hot or cold, the traders who last are the ones who stay disciplined.
Many who thrived in 2020 saw those gains disappear when they failed to adapt.
Everyone’s capable of discipline. The issue is that most traders don’t have any direction. My students learn to apply their discipline to the market correctly.
Join my Trading Challenge, to get daily watchlists, live lessons, and a community of serious traders.
No hype, just hard-earned wisdom and real strategies.
The market rewards preparation. Be ready.
Cheers
*Past performance does not indicate future results
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