Some beginning and intermediate traders have learned chart patterns, gained an understanding of trend, and can create trade setups based on a “reasonable” methodology. But success eludes them because they can’t “put it all together.” A core market principle, a strategy and tactics is only step one. Next is process and execution. You can have all the theory down, but you then need to put it into practice.

Key to this is the emotional discipline to employ appropriate risk management, admit you’re wrong in a trade, and not letting hope, fear and greed permeate what you’re doing.

Successful traders who look back on their progress know that mastering the charting Xs and Os was only one piece of the puzzle. The other was psychology, discipline and a commitment to always do the right thing. The fascinating thing is that when one commits to both mastering the Xs and Os and becoming self-aware about trading psychology, one reinforces the other.

Efficiently learning a core principle and then applying it to a sound strategy and simple tactics gives you the confidence to obey rules and do the right thing all the time because what you’re doing is structured, rules-based, simple and intuitive. In comedy terms, you’re trading from a routine, not doing improv.