# Discipline Makes Money from Stocks

Canonical: https://tradersdailydirection.com/discipline-makes-money-from-stocks/

Every stock that I present on my **_Watch List_** in _Traders Daily Direction_ has to have real reasons to buy.

I put them through my **_[Surge Stock Indicator](https://tradersdailydirection.com/ssi-in-action-video-of-my-scor/) (SSI)._** And they have to prove out to make the cut before I then do more work and analysis on them. And only after more and more work to make my final cut - do they make it for each week’s presentation each and every Monday in _Traders Daily Direction_.

And the SSI keeps netting market beating returns including last week – **_when the market was well, not good_**. My **[Athene Holdings](https://tradersdailydirection.com/watch-these-stocks-climb/) (ATH)** beat the market and is trading up strongly yesterday. 

And this week – that’s just underway – my **[Pool Corporation](https://tradersdailydirection.com/tag/pool-corporation/) (POOL)** is already out of the blocks up nicely.

And to get my full rundown on my **_Surge Stock Indicator (SSI)_**, you need to read my special report: **_The Magic of the Stock Surge Indicator (SSI)_** [that you can download for free right here](https://tradersdailydirection.com/special_reports/the-magic-of-the-stock-surge-indicator/?siteId=512).

[To see this week’s collection of stocks on my **_Watch List_**, click here to see them on the Traders Daily Direction website](https://tradersdailydirection.com/stock-watchlist/?siteId=521). **And as I just noted, we’ve got some stocks that are moving up right now.**

## All of this takes work and more importantly, **discipline**.

Because on any given day – I see plenty of stocks that are catching folk’s eyes and attention – even mine. But I have to temper any enthusiasm with my disciplined approach to buying stocks. Otherwise – trouble can and will ensue.

Take for example a tweet that I saw pop up from Mark Minervini:

> When it comes to forecasting stock prices, there are two kinds of investors: those who don't know and those who don't know that they don't know.
> 
> — Mark Minervini (@markminervini) [June 18, 2021](https://twitter.com/markminervini/status/1405888099561971713?ref_src=twsrc%5Etfw)

Mr. Minervini runs _Quantech Research Group_ and _Minervini Private Access_ that are online newsletter stock picking services. And he has had some investing books published over the years.

I follow Mark and like some of his work. But what has struck me is that he readily admits that no one ever _knows_ what a stock will do next.

And this really resonates with me – as **I never will throw a flyer on any stock without my SSI research** backing it up – even if it does appear to be a deal.

## **Case In Point: What Not to Buy**

Earlier this week, I came across **Encore Wire Corporation (WIRE)** in one of my scans.

The stock has everything going for it.

Earnings growth, accelerating sales, strong price action…

![](https://www.tradingview.com/x/JShybZcC/)

The stock was even setting up in a textbook breakout pattern.

Shares were consolidating in a tightening range.

Volume was sinking as it usually does before the surge higher.

I was tempted to buy early – to get in a couple dollars cheaper before the stock broke out.

## **_Luckily, I resisted._**

**_Stock trading requires discipline_**.

**_I knew I needed to wait for confirmation._**

And it’s a good thing I did.

![](https://www.tradingview.com/x/BqTPXzsp/)

Suddenly, the stock collapsed.

Shares were down 7% on no apparent news.

It is easy to get romanced by a stock – to believe so strongly in the business or the fundamentals or the story that we convince ourselves it **_HAS_** to go up.

But this attitude is detrimental to your success as a trader.

All stocks are bad unless they are going up.

I don’t care if they just developed the cure for cancer.

If the share price is falling, it is not something I want to own.

And you shouldn’t either.

#### **_Price is king_**.

#### Nothing else matters.

#### **_The rest is just noise._**