In the trading world, sometimes traders can feel that they’ve gotten lucky. A few wins in a row, and a trader feels like they have this thing down. Then a loss comes out of nowhere, and they feel like they have no idea what they’re doing. 

If a trader has success, they can attribute some of that success to luck. But in the end, it’s not going to keep them funded for long. The real advantage any funded trader has is discipline and consistency. 

Discipline is the ability to control risk, have a plan, and execute with a level head. That’s what funded programs like Moneta Funded are looking for.

The Illusion of Luck

Getting lucky on a trade can lead you to believe you’re “good” at trading. A trade might hit your profit target because of a random market fluctuation or news event. When these things happen, you start to believe that you “understand the markets.” 

Many people who think their luck is their edge overtrade, fail to adhere to stop-losses, or break risk management rules. This results in them losing any gains they made with their lucky streak.

Yes, luck can lead to wins, but it is never a sustainable edge. Lack of discipline will lead you to trade on impulse, deviate from your plan, and ultimately lose your funded account.

Why Discipline is the Real Advantage

What makes traders stay consistently funded, despite the market being totally random? 

Well, a funded trader maintains a consistent daily routine, honours stop-losses, doesn’t over-leverage, and will never exceed his maximum risk on each trade. 

They have a plan going into each trade and know the entry, exit, invalidation, and whatnot before even opening the trade. And finally, a funded trader also has discipline over his mindset. 

Funded traders know that one of the biggest enemies to their trading is emotional trading. They know that if they trade while stressed, tired, or focused on something else, they’ll only trade recklessly. So they stick to their routines. They discipline themselves to take losses just as well as gains without overreacting and losing their direction.

What Sets Funded Traders Apart

What sets these traders apart is that they only risk 1-2% (or less) of their account on each trade. They place their stops and targets in the platform, not just in their heads. They utilize a pre-trade checklist before entering trades (market conditions, news, invalidation points, etc.) and conduct a post-trade analysis without emotion (what did I do right? What did I do wrong?) 

These behaviors repeated over and over again get them results. The types of results that luck just can’t accomplish.

Learn how to set up the ultimate pre-trade checklist here.

Cultivating Discipline Over Luck

Discipline is not built overnight. It takes time and practice. It starts with logging every single trade you take, the reason for the entry, the plan and the outcome. Your risk management rules, entry and exit rules and maximum daily loss rules should be defined and adhered to. Never trade more than you have to or try to play catch up because the trade is a “can’t miss”. 

This is where programs like Moneta Funded come into play. Our funded trader program incentivizes individuals to play by the rules and practice discipline. Funded traders that can sustain and be consistent are the ones that will survive.

Conclusion

Lucky wins might make you a profit occasionally, but luck is not a qualifying attribute for a funded account. Discipline is the qualifying attribute of funded traders, and discipline is the key to consistent profitability. So, whether you use pre-trade routines or simply keep yourself accountable to the rules of your trading plan, do whatever it takes to stay disciplined and turn that skill and strategy into results. 

Learn more about Moneta Funded’s programs here.