What would you do in this situation?
Imagine you’ve just committed to a $20,000 trade.
No doubt that’s a pretty significant investment for most people, but you’re not worried.
You’ve checked, double-checked, and triple-checked all the data.
You’re confident that if you see this thing through, you can 5x your initial investment.
This one trade could turn your $20,000 into a $100,000 windfall.
All your sources check out, so you invest your $20k and wait…
But you’re impatient. $20,000 is a pretty hefty sum after all.
You’re constantly checking your accounts making sure that your investment is growing.
Every few minutes you’re in front of your screen, going over the numbers.
Five days go by, but because you’ve been so on edge the entire time it feels more like 50…
You get up to check your accounts again for the 9,325th time and you’re greeted with some good news…
Your investment has gone up by $10,000!
$10,000 in 5 days!
That’s more than what most people make in a month, and you just did it in a week.
You feel relief that your investment seems to be paying off.
The last 5 days have been especially nerve-wracking for you and there’s no telling if or when this investment will actually become the $100,000 you projected…
Plus, you just made more money in 5 days than ever before.
And that’s when it happens…
You start thinking about closing the trade early and taking your profits now.
After all, $10,000 in profit in the bank is better than a hypothetical $100,000, right?
What would you do in this situation?
Most traders would cash out early and take their $10,000 profit…
And that’s exactly why they fail.
The traders who would take their profits early are the same traders who would take all their money out of the markets during an economic downturn.
These fair-weather traders lack a crucial element that keeps them from realizing the astronomical gains that the gurus make…
Discipline.
It’s a lack of discipline that keeps traders from following through on trades.
It’s a lack of discipline that keeps traders from keeping their money in the markets when things go down or sideways.
It’s a lack of discipline that keeps traders frustrated and unable to achieve their full potential.
Your success as a trader all boils down to discipline.
So before you pull the trigger on your next trade, ask yourself: “Am I disciplined enough to see this through?”
Be honest with yourself. If you don’t have the discipline, then don’t execute the trade.
Otherwise, you’ll just be gambling with your money.