Stuart McPhee and Mark Cook tackle some stock market trading tips.
Mark: 'I have a saying Stuart, if you can find a job to do that you love, you'll never work a day in your life. And that is what trading is. I love to do it. It's like a hobby, it's like pleasure, and I get paid for it and get paid very handsomely for it. But I do not want to underemphasize the seriousness of it. You have to go in there with a plan, you have to go in there with a habitual routine, you have to go in there with desire, you have to go in there with passion and you have to be tough. '
Stuart: 'Character attributes of successful traders. I often talk about it. Is discipline overrated? Everyone talks about discipline, it's almost clichéd when it comes to trading.
I think discipline is not overrated at all. '
Mark: 'And what I've found is one person might think they're undisciplined and another person thinks they're very disciplined and when you compare the two, the one that thinks they're undisciplined is more disciplined than the one who thinks they're disciplined.
Stuart: 'Because their standards are higher.'
Mark: 'Well what you find with people, Stuart, and I'm sure you find this too, a person can be very disciplined in one environment, in one situation and for a very finite period of time. Another person is generally more disciplined and maybe for that very focused time, the other one is more disciplined. One of the best stock market trading tips I can give, is the importance of being disciplined during the trade.
I'm a case of that. I do not consider myself a disciplined person at all in my life. I'm very impulsive, I'm an adrenalin junkie. But when I trade every 't' is crossed and every 'i' is dotted, all details are paid attention to so I think that is a mindset. So I do not think it has to be as quantitative as people think. I'm going to be regicted to be out here at this point and this point or only only x amount of money.
It's more the mindset of, I'm protecting my assets and that's the number one focus of what I do. The profits take care of themselves, the losses have to be governed. Now if that's discipline, that's what I say. Discipline is not that every day I have to have a black pen and a blue pen and I have to sit a certain way when I'm trading and I have to read the newspaper at a certain time. Those are more quirks than anything else.
But the other side of the thing is this, in a certain situation I will do this type of reaction to it every time, because I know the probabilities are that it will work out. Not to say one will not work because one will not work at some time. Then you have to employ the discipline knowing that you're bad to get out of the thing. Discipline is a very integral part, but the application and the definition of it is very widespread.
Stuart: 'We could list another twenty attributes and you have stated passion before and desire and focus and patience and confidence and we could keep rattling them off. But I think, personally, discipline just stands at the top because discipline is self control and how can you have some of these other attributes if you do not have some measure of self control over yourself? I think it all comes from a deep desire within to heighten those attributes and become more patient and disciplined. This is one of the great stock market trading tips – be disciplined. '