Free stock software downloads and resources

Why do you think so many trading sites say trading requires discipline? Does a dog have discipline. Well some have, but certainly not for trading, and they're no worse statistically then all those systems requiring discipline out there.

As an example, some sites say that you can't be too greedy. Just set your goal for what you want to make for the day, and then quit. You've got to have discipline not to continue on.

But this is as stupid as those people insisting you need to have a price point on when to sell. The stock market goes up and down completely at random. Whether or not you continue trading the whole day, or just a small part of it makes no difference. The only thing that's important to the average profit or loss that you make, is the total time spent in the market, and the number of trades you do. It depends on the number of trades because you'll lose a little every time you trade, through commissions and the spread of the stock. But of course the snake oil guys like you to trade, if you just bought 20 years ago and sat on it, you wouldn't need them at all.

So why do snake oil guys say trading requires discipline? Two reasons. The first is that people love a challenge, the way people like to master a video game. And that way they feel they've earned their money by becoming a champion of "Beat the Street". The second is that this gives them, and you, a way out to explain a loss. "You broke rule #3: never trade when the hour is an odd number and the day is even when it's raining in Cleveland". See if you only were disciplined enough you wouldn't have made that costly mistake. You've got to be more disciplined and read the rules over again.