c18 JWBT016-Busby September 30, 2008 15:3 Printer: TBD
CHAPTER 18
Psychology and
Discipline: The
Winner’s Edge
I
n 1989, Stephen Covey wrote his mega-seller,The Seven Habits of
Highly Effective People(Free Press, 1989). Since that time, Covey
has gained the respect of leaders and managers from all walks of life.
Through his books and his institute, he has taught thousands of people
how to become more effective in managing and living both their business
and personal lives. Reading about the seven habits will probably not have
a lasting impact on anyone. However, taking action and using the seven
habits will make a difference. One of my friends, Mike Dow, was the mayor
of Mobile, Alabama, for 16 years. Shortly after being elected, he attended
one of Covey’s courses. When he came home from the institute, he worked
diligently to put the principles that he had learned into practice. Mike says
that the information he learned from that course changed his life. Mike is
known throughout the community as a man who gets things done. He did
not learn a theory or read about some ideas and put them on a shelf. He put
the ideas into practice and he got results. The more he practiced the seven
habits, the more ingrained they became in his routine. After all of these
years, I think he is a walking example of those principles. Mike put the
principles into practice. He disciplined himself to carry out the principles
and rules that he had learned.
As with the seven habits, it will do you no good to read trading strate-
gies if you do not exercise control and execute them correctly. To be a
good trader you must have discipline and control. Over the years, I have
seen many people aspire to become professional traders. They learn win-
ning strategies. However, they either cannot or will not stick to the rules
and carry out the strategies effectively. They make dozens of trades every