Maintaining Discipline, Key to Market Timing Success

The winning market timer is the disciplined market timer. Discipline means controlling impulses and controlling emotions.

As many new market timers can tell you, however, maintaining discipline is often easier said than done.

Just as the vast majority of market participants are driven by fear and greed, many new market timers find it difficult to avoid succumbing to self-doubt and panic.

Market timing is challenging in that we often take positions "against" the prevailing sentiment of the majority of traders.

Discipline is key, and it is vital to take whatever steps are necessary to maintain that discipline.

Markets Are Chaotic

The markets are chaotic and unpredictable. The current volatility being a perfect example. When faced with an uncertain set of circumstances, it is easy to see why market timers may, at times, feel unsure and unsettled.

Timers follow strategies that provide entry and exit signals based on plans designed to be profitable over time, and that will also protect their capital. 

But no timer can know with certainty how any "one" buy or sell decision will play out. Some market timers thrive on the excitement, but many find it disconcerting.

The best way to combat feelings of uncertainty is simply by following a trading plan. If one trades with a detailed trading plan, such as the strategies offered at FibTimer.com, he or she will impose structure onto an unstructured reality.

The markets may seem at times like a mass of confusion, but you can address it by following a strategy that actually uses the volatility of the markets to generate timing decisions.

The more structure you have to follow, the less uncertain and unorganized you'll feel. You will know what to do and when to do it.

Optimistic Yet Realistic

One's mood and attitude is another factor that impacts the ability to maintain discipline. An optimistic yet realistic attitude is vital to maintain market timing success.

Because market timing often places you at odds with the current market sentiment, it is understandably hard to feel optimistic when your position is at odds with the majority.

It takes practice.

Emotions And Decision Making

Maintaining discipline is vital for market timing success. It can be extremely difficult at times, especially in sideways (non-trending) markets.

The best way to be disciplined is to stick to your timing strategy and keep your emotions and impulses under control.

Only by maintaining discipline can you realize long term success timing the markets.

Remember that all trading strategies require discipline. Not just market timers. It is the one crucial element between successful traders and unsuccessful ones.