Matt Zimberg discusses the concept of discipline and how it not only applies to trading, but to all aspects of life. Discipline is not developed overnight, it takes years of regimented training to reinforce positive habits into one’s life.

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There is a substantial risk of loss in futures trading. Past performance is not indicative of futures results.

Episode Transcript

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[00:00:00]

Welcome to Episode 7 the Optimus Futures podcast. In this episode our host Matt Zimberg discusses the principle of discipline and how discipline reflects and trading as well as all aspects of life.

[00:00:13]

Please remember that this matter should be viewed as a solicitation to trade trading futures and options involve substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. Optimus Futures LLC is not affiliated with, nor does it endorse any trading system, methodologies, newsletter or similar service. We urge you to conduct your own due diligence.

[00:00:45]

Have you been looking for practical advice to take your trading career to the next level? Can’t decide on which platform to trade on? Fearful of the current state of the market? Look no further. Welcome to the Optimus Futures Podcast a place to learn from an industry insider with over 20 years of experience in commodity futures and options. Gain insight to the newest technology, platforms risk management, concepts, trading philosophy and advice about the current state of the market. For futures trading platforms, deep discount trading commissions, overnight margins and instructional videos. Feel free to visit our website at Optimusfutures.com. Now here’s your host, independent broker veteran and CEO of Optimus Futures, Matt Zimberg.

[00:01:33]

Hello guys. This is Matt. This podcast is going to be about discipline. Everybody tells you that you have to be very disciplined when it comes to trading. But discipline is not just a word it’s a field in itself and it takes a long time to develop and trading. You can’t decide one day that you’re going to be disciplined then the next thing you’re disciplined. So I’m going to go over some variables that I think will help you or potentially could help you. How you develop your own discipline in trading. There are things in discipline that are universal. Everything that I say here is based on my experience and my opinion. You’re more than welcome to add any variable that you think will help your personality.

[00:02:23]

One of the most difficult things in trading and staying disciplined is the lackluster periods. This is when you go through periods that you don’t perform, you don’t perform negatively or positively you just kind of a mix of the two you even breakeven and it just goes nowhere. And every trader has those periods. This is when traders become creative when they say creative they’re actually bored. So that might increase the size of their trades. They might be looking at other markets. And so you have this ability, you should have this ability to stay focused even if the period is extremely boring. Then you have periods of drawdowns.

[00:03:17]

: One of the most difficult things in trading and staying disciplined is the lackluster periods. This is when you go through periods that you don’t perform, you don’t perform negatively or positively you just kind of a mix of the two you even breakeven and it just goes nowhere. And every trader has those periods. This is when traders become creative when they say creative they’re actually bored. So that might increase the size of their trades. They might be looking at other markets. And so you have this ability, you should have this ability to stay focused even if the period is extremely boring. Then you have periods of drawdowns.

: Every successful trader has periods that the market just does not react well to the methodology. It could be a day, it could be a week or it could be a month or a couple of months. But you have to be prepared for that kind of a period. And I know during that time you question yourself if what I’m doing is right or wrong. And I’ll leave it to another podcast to decide whether you should consistently trade your method. But for now let’s just say that every trader goes through that. So if you are going through that it is absolutely normal part of discipline is also journaling your experience. It is extremely important to write your experience in the market and something that I’ve picked up on as a successful trader in my opinion should drive more. During good days and right less during bad days. We tend to do the opposite. Why. Because when things don’t go well we get to really really analyze them. But when things go well we think it’s natural talent. But here’s what we do if we analyze more during bad days as opposed to good days we actually sending a signal to our brain that the habit that we’re picking up is the negative habit and we’re going to go back to that habat. So in my opinion you should write a lot more and analyze a lot more during the years that you are doing well. So you could repeat it and consistently repeat it as long as the market allows you.

[00:05:05]

Discipline itself does not start in trading. If you are a disciplined person from any other field in the area of military or maybe you wake up every day 5:30am to go to the gym or anything else you can definitely bring this discipline with you to trading. One thing that you probably learned if you are one of those people who does think in a disciplined manner or a habitual manner that it’s boring. It’s the same routine over and over again. But that’s what it requires in training as well. So obviously if you do not wake up every day at 5:30am, you don’t come from a military background, or anything else that requires discipline. You have a little bit more of a challenge than a person that has been doing that for a long time.

[00:05:55]

Discipline is built over time. It’s a habit. It’s also the ability to create rules and you have to obey those rules. So as time progresses you have to create a rule and you have to obey that rule. It’s not a creative field it’s not a field where you get up everyday in the morning and you make different rules as they apply. It’s the same roles over and over again. Discipline is also the ability to make less choices. It’s not the ability to create more rules or more choices. What you want to do is narrow down your choices as far as what you can do. In a trading day. And in general and discipline. And again this is my opinion. You want to narrow down the choices that you make throughout the day. Discipline is something that’s evolving. It’s not a speck time you will evolve as a trader and your discipline will evolve as well and it has to be very gradual thing. It’s not drastic from one discipline to another. It’s a concept of tweaking and tweaking and tweaking. Sometimes you’ll have to change your discipline a little bit based on market volatility for example or your rules change and then your discipline comes in and you apply it and it’s discipline is also learning the markets on an ongoing basis.

[00:07:22]

I’ve been doing this for a very, very long time and I would be extremely arrogant if I got up in the morning and I would say I know the markets. You know what. Even if somebody has been in the hedge fund industry or just the fund industry or anything that’s financial and they get up in the morning and they say I know the markets. I think this is a very arrogant approach. If anything that I’ve learned from people that are disciplined those are people that consistently continue to learn the markets on a day to day basis. Maybe in some days you won’t be able to learn anything. But over time as the markets change and evolve you will also evolve with your discipline. Discipline is also the ability to make change. A lot of us do not like change. You know we’re used to the same platform the same method. It’s convenient. It’s hard to make a change sometimes. We know that making certain changes would be beneficial for us, but we don’t do it because we’re afraid of change and it requires a little bit of energy. Every change requires energy. But if you want to be successful not only in trading and in life again. In my opinion you always have to change. You have to see where circumstances are better. It might be a better broker. It might be a better platform. It might be a better technology. It just could be a better instrument. I don’t know, but always have the ability to change if change is necessary.

[00:08:57]

The last thing that I would say is part of being somebody who is disciplined person is the ability to stay positive. In a positive environment you will think straight, absolutely straight. One of the things that I do when I need to come to conclusions about something or find solutions for something is the ability to isolate myself from everything from internet, from individuals of my life, and just sit there and think very objectively about the situation. During the time it is extremely important to stay positive because positive state of mind and the ability to encourage yourself to move forward. You will come up during that time with very creative solutions that others do not. It is extremely hard to stay positive. I know that sometimes we can run into financial problems. We can run into emotional problems personal problems spouse problems. It doesn’t matter which problem you always have to stay positive. This is not because you know I said so it just this is what your brain needs.

[00:10:14]

On that note again thank you for listening to this podcast. I hope I was able to help you. I wish you the best of luck in trading and of course would love to have you here as a customer at Optimus futures. All our details are always on the site at Optimusfutures.com. Thank you and until the next pod cast.

[00:10:35]

Thank you for listening to the Optimus Futures Podcast. Subscribe to our podcast on iTunes SoundCloud and Google Play. You can also find us on YouTube Facebook Twitter and Google Plus all under the username Optimus Futures if you have any questions feel free to send us an email to support@Optimusfutures.com or give us a call directly at 561-367-86864. Toll free at 1-800-771-6748. Once again thank you for listening to the Optimus Futures Podcast.

[00:11:05]

Please remember that this matter should be viewed as a solicitation to trade trading futures and options involve substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. Optimus Futures LLC is not affiliated with nor does it endorse any trading system methodologies newsletter or similar service. We urge you to conduct your own due diligence.

 

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