Discipline key to success

Barclays Wealth has a new report out entitled “Risk and Rules: The Role of Control in Financial Decision Making.” This report looks at people and personalities and how they influence financial decision making. It also explores the strategies people use to manage their behavior when making investment decisions.

Something I’ve noticed over the years in working with traders was confirmed in the research conducted by Barclays. Most US based traders want financial satisfaction yet are unwilling to work on discipline issues that prevent that satisfaction. Most don’t want to figure out which trading style is best for their personality. Most don’t want to put in the hours of necessary homework to keep abreast of their place of business, the markets. Most would rather have someone tell them exactly what to do and when.

The US ranks 5th in wanting financial satisfaction yet third to last in a desire for discipline. Discipline is key in being successful in the markets, this I know. Trading is like a diet, it takes discipline to work. Seems too many are more willing to pay for a magic pill to take the weight off while they sleep or watch television. Think about it.