Importance of Discipline While Investing

tipstop blog image

Discipline is essential in every walk of life, even in trading. Without discipline, one’s life can come spiraling down in a whirlwind of chaos and turmoil. Discipline maintains balance in life and helps one overcome unexpected catastrophes.


When it comes to the volatile and highly complicated world of stock trading, discipline is the key to success. One of the most common (and true) nuggets of trading wisdom that we frequently hear is that one needs to be a disciplined trader. By keeping oneself disciplined and grounded, one can avoid incurring losses and enjoy profits through trading.


Why should one instill discipline in trading?


Discipline, for many traders, is not as easy as it sounds. Many enjoy taking risks and often do not follow a full-fledged plan while trading, depending instead on intuition or word of mouth. But taking unnecessary risks while trading typically leads to heavy losses. If not checked, this approach can drain one’s investment corpus in no time.


Professional analysts do a good job of painstakingly gathering information on different financial instruments and publishing research on them. Given that most of us are not professional analysts; taking the help of one is recommended in order to stay disciplined while trading and to avoid unnecessary losses.


Who hasn’t heard the story where the investor did not square off when told, and the stock ended up falling another 20%? A professional analyst studies technical charts before publishing research. The target and stop loss prescribed are not random numbers. That is why it is imperative to follow the targets and stop loss levels that are prescribed. By booking profits and squaring off losses when the analyst recommends, actual returns match those claimed by the analyst and undue risks are avoided.


Basically, to succeed in the complicated and dynamic world of trading, one needs to trust the analyst and follow his or her recommended levels for entry and exit. In the long term, there is no other way to avoid losing out.


At Tipstop, you can find professional analysts who are registered with SEBI and who provide verified research on market segments you trade in. By subscribing, you can enjoy real time research calls and valuable tips on trading, in the palm of your hands. So, what are you waiting for? Get registered to our waitlist today!