In part 9 of the series I will go over one of the key components we all need as traders and that is patience. Without it many traders will form bad habits. These habits include entering too early, entering too late, taking profit too early or even cutting losses too early. All these habits that are formed by lack of patience can be devastating on an account.
Let me give you a clear example for you as well. This example being two different types of traders point of view on the market. One hindered by not being patient and the other waiting on each move between certain price moves.
Learning Patience in Trading – The Video
Traders that are impatient often think they can sit down turn on there trading platform and right off the bat can place a trade. This is seriously not the way the market works unfortunately, even if one is trading the lower time frames there is always a wait between valid signals.
Also impatient traders often become scalpers which is okay in some circumstances yet as a habit leaves a lot of the profit off the table. I mean, we spend a lot of time between price zones that offer high probability, so not trading the full process potential when price gets there is creating a habit that over time maybe hard to change. Following a good process such as what is discussed in The Engulfing Trader series is key in breaking impatient patterns.
On occasion some impatient traders will even cut losses too early to find that there stop loss zone held quite fine.
Another attribute of an impatient trader may even be not waiting for the price action candle to close fully.. Many new traders to price action I am sure, can relate to this one. Waiting for candle close is essential.
This is more so the trader you want to be. Remember it is not how many trades you take that makes you a trader, it is the efficiency of the trades that you take that builds your account. This can often be referred to as waiting for price to get to you. Waiting properly for price action candles to close. Waiting patiently for support and resistance zones. Waiting patiently in trade management as well. Some trades you may hold for days and some trades could be held for weeks… Some maybe hours.
A patient trader knows this and as mentioned in the video, none of us are perfect as traders. Heck, I still make mistakes myself, we all do and I have been trading a long time, so do not put too much stress on yourself. Instead when you start to sway move back to the process which is a massive key in trading overall. The process is what keeps us on track overall.
Patience overall is not just about one thing though, it is patience to except losses, patience to except wins and patience to following the positive expectancy of your trading plan. All of which must be in focus as you go through your daily trading steps.
Overall patience is a big key for everyone, none of us can deny it, we all need it throughout life and trading is no different. It is important to see trading as not so much a plug and play system. See it more so as when everything aligns we can plug into it based off what our strategy allows. Then, as long as your strategy has a positive expectancy all one has to do is follow it, stick to it and over time it will produce results.
Above – The Engulfing Trader is Available..
Powerful Sayings that Relate to the Topic –
“…We cannot see trading as 1 trade, we must see it as a process of many trades, cutting our losses earlier than our winners and building our accounts by aligning ourselves with positive expectant moves…”
“… All we need is a positive expectancy of over 50% in trading any market as long as our risk to reward is smaller on the risk side then great profits await the patient trader..”
Both sayings being extremely valid and true. A patient trader also does not want to put too much expectancy on one self for monthly gains as well. Set easy realistic goals of realistic figures such as a monthly gain on the account of 4% to 5%, this is a goal that does not put much pressure on the trader and is realistic and achievable. By setting outrageous impossible monthly goals it can make many traders, even patient people, very impatient or stressed trying to get to hard to achieve targets. Keep it simple and keep it easy to follow as well for what you expect.
In time, you may be able to raise that goal but simple steps to begin is always best.