How to Create Consistency in Your Trading - Discipline Isn’t Willpower
episode
Talking Trading | Australian Sharemarket Strategies, Education & Trading Psychology
38 min
2 speakers
8 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Louise Beffert here, the money chick and the host of the Talking Trading podcast. This is how traders excel. Today's episode is for you because you know what to do. You know what your rules are, but sometimes you have trouble following them. Today on the show, I've invited the host of the Trading Psychology podcast, Rob Reinhold, onto my show so that we can thrash this out together. You're going to want to listen to every single word and share with some of the traders in your life because, firstly, You'll learn why the research doesn't back that discipline is required. You know what it is? It's systems, and we're going to tweak that out together. Second, you're going to learn some of the psychological systems that professional traders use to develop consistency and improve their results.
And third, you're going to discover why consistency is a trainable skill and you can train yourself to become more consistent. If you've ever nailed your trading plan but you have refused to follow it, this is the show for you. So let's get into it. Rob, welcome to the show. Look, most traders believe that Discipline is about trying harder, where you push yourself more and more to be able to get the result. But willpower, it is such an unreliable tool for traders. Why do you think that is?
Oh that is a great question. And it's something that we all tried early on in our trading career. We just thought Just be more disciplined. And I remember thinking Rob, you can be disciplined in every part of your life. You can go to the gym every day. You can eat right. You're so good at discipline. And when it came to trading, there were some things I just couldn't do. And as I got more and more into it and I really started to study. The problem is that we have a DNA. We all have this DNA.
Why does willpower fail as the main source of trading discipline?
And I'm I'm gonna give an example like a food, like I hate black licorice. I hate it. I know. Do you like black clickers?
I love it. I was addicted to it.
It's one of those things, you either love it or hate it. Now I didn't stop somewhere in my teenage years and think about whether I wanted to like black licorice or not. You either loved it or you hated it. And that's how we're all built. There are some things that are so strong in our personalities. That if I decided, hey, I'm going to love black licorice. I would likely fail that or say, I'm gonna try to eat black licorice every day for the rest of my life. You're setting yourself up for failure. Because You hate it. You hated is not who you are. So when trading, we have these traits that are us. And sometimes they're so strong. Right. If you try to outdiscipline 'em, you're always gonna lose because it's so against who you are as a human being.
I think that's the the first thing that traders need to figure out. Is who are they?
Mm, because our bank balance will rarely exceed our level of self development. That's for sure. The thing with willpower though is that Often people think you've either got it or you haven't. Whereas discipline, I feel, is more of a system. It's the environmental design. So do you have everything at your fingertips? Have you minimized distractions? Have you been able to set aside all of the things in your day that are on your mind that you're ruminating about? And that reducing of the mental load, I think, can really help traders because it is something that you can control. Your environment is something that you have jurisdiction over. There's actually a research piece about ego depletion. Now, the guy who researched this is Baumeister as well as Et al.
which means a whole heap of other researchers. But the core idea is that willpower is a finite resource.
How does ego‑depletion affect trading decisions during drawdowns?
It's something that runs out, and it especially runs out over time. So we wake up, we're fresh, we have a big adrenaline dump, a big dopamine hit to get ourselves moving. But then after that, things start to depress. So if you're leaving those really big decisions to a time when you're depleted from an ego sense, though ego more control rather than bravado, then you're going to have trouble making those decisions with clarity.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:02–2:07
2
Why does willpower fail as the main source of trading discipline?
2:07–4:17
3
How does ego‑depletion affect trading decisions during drawdowns?
4:17–7:20
4
What brain‑imaging studies reveal about the switch from logical to emotional trading?
7:20–10:22
5
Why is building a psychological system more effective than relying on willpower?
10:22–14:30
6
How can traders design their environment to reduce decision fatigue?
14:30–18:12
7
In what ways should a trading plan match a trader’s personality type?
18:12–21:57
8
Why is automation considered the simplest path to consistent execution?
21:57–38:31
Speakers
2 identifiedMore from Talking Trading | Australian Sharemarket Strategies, Education & Trading Psychology
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