Step 1 - Enter into a Daily Contract with Yourself

In the dynamic world of trading, discipline separates the consistently profitable from those who struggle. The Daily Contract isn't just another technique—it's the foundation that transformed my own trading and that of the traders I've mentored.

The Daily Contract: Your Morning Commitment

Each morning (or at the start of your day), before checking charts or headlines, take out a blank page and draft your contract for the day. This isn't a suggestion or a wish list—it's a binding agreement with yourself.

Your contract must clearly state:

  • The specific setups you'll trade today (not "good setups" but "the pullback to the 20MA on the 5-minute after price is above the 200MA")
  • Your precise risk parameters (not "reasonable risk" but "0.5% per trade, no more than 1.5% total risk exposure")
  • Your maximum daily loss and daily profit (-2%? -3%? Be exact)

Beyond the Trading Screen

Yes, include commitments to yourself beyond trading:

  • What you'll eat (or what you won't)
  • When and how you'll move your body
  • Your mental space maintenance
  • Time allocated for relationships
  • Specific learning goals

But here's the truth—don't get sidetracked by these elements. I've known profitable traders who smoke, don't exercise, and eat terribly. I've also seen physically fit traders blow up accounts repeatedly.

The Only Thing That Matters

Trade your plan. Plan your trade. Follow your contract to the letter.

While a disciplined life generally indicates disciplined trading, remember this isn't about becoming a monk or fitness model. The market doesn't care about your diet—it cares about your execution.

The way you do one thing tends to be the way you do everything, but this isn't absolute. You're traveling the middle path—recognizing patterns in your behavior without becoming dogmatic.

The Accountability Check

Before shutting down your trading platform, pull out your morning contract. Be brutally honest:

  • Did you take only the setups you committed to?
  • Did you honor your risk parameters?
  • Did you stop when you said you would?

No judgments—just data collection. The patterns will reveal where your discipline breaks down.

The Uncomfortable Truth

You might think you're different. That somehow the rules don't apply to you. Life has a way of teaching this lesson repeatedly until it sticks: consistent profitability requires consistent discipline.

Your contract isn't magical. It's practical. It's the line you draw between intention and result. Between random trading and deliberate execution.

Write your contract. Sign it. Daily. Honour it. This isn't about perfection—it's about keeping your word to yourself when it matters most.