Discipline Is The Key To Investing And Trading Success

Here's what trading and investing legend Richard Dennis, said about making money in the markets ...

"I always say you could publish rules in a newspaper and no one would follow them. The key is
consistency and discipline. "

The above quote is from the book "Market Wizards" by Jack Schwager. Dennis is a man who, as a trader, took a measly $ 400 and grew to an estimated $ 200 million dollars in a matter of years - not decades - by being disciplined and following his rules. He is a legend that a number of other "Market Wizards" interviewed in Schwager's book described Dennis with the comment, "I'm not in his league."

There are probably thousands of investment and trading systems to make them. Money Some make big money. But the truth of the matter is that some of the users of these systems will ever make money.

Why?

Few people have the discipline to stick with a winning system or strategy. They go through an inevitable period losses and impatient. They start tinkering with their rules or completely abandon them.

Have you ever had one of those mountain charts marketed by the investment funds that show that if you had invested $ 10,000 in 1950, or when, your investment would have grown to $ 10 million or so seen in 2005? I bet you do not know one person who ever did that. And it's not because it's not true. It is the absolute truth. It's not hype. That's what the investment would have done. But that is not what the investor would have done.

The typical investor would have saved within a few years, once the market took a fall or when the money was needed to buy a boat. Or another toy Or the average investor would have taken off in what the "hot" investment was always buy a given time, at the peak price.

As Dennis says, the key is consistency and discipline. So do not spend time looking for the holy grail of investments or trading systems. It does not exist. The Holy Grail is within you. It is not the investment that will determine success or failure. It is the discipline of the investor.

Larry Holmes invites you to Your common sense guide to financial and investment success. Visit