InvestorQ : Why is discipline important in investment; or is only in trading that we need to worry about discipline?
ishika Banerjee made post

Why is discipline important in investment; or is only in trading that we need to worry about discipline?

Answer
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Dinesh C Nagpal answered.
3 weeks ago


Reward is over rated Discipline is under rated

It should always be vice versa. Without them you will never be a successful trader.

You wont be a disciplined trader if you lack the same in your daily routine/lifestyle.

Our habits make what we are


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varsha Motwani answered.
2 years ago


One of the key pre-requisites for success in investing is discipline. What exactly is discipline in investing? It is essentially about religiously following a set of rules that will determine the framework of your trading and investing. The following are examples of discipline that an investor has to maintain…

Investing discipline is all about investing regularly and in regular quantities so that time and compounding work in your favour to help you create wealth over the long-run.

Stop loss discipline is the discipline of keeping stop losses while trading, irrespective of whether you are on the long side or on the short side. A stop loss is a basic loss that you are willing and able to take; beyond which discipline dictates not to hold on.

Profit booking discipline mandates that when you get opportunities in the market you book profits on your trading position so that you always have cash available when opportunities present themselves

Reinvestment discipline is the rule that whatever dividends you earn on your investments get reinvested in equities so that you actually get the full benefit of the power of compounding.