Patience

If I could give you just one single virtue to cultivate as traders, it would probably be patience. Lack of patience is the undoing of many an otherwise brilliant trader, even myself at times. Yes, it happens to best of us. Let me paint you a picture and let me know if you see yourself reflected in it… Really. Comment below the article as I’d love to hear your feedback.

Here’s the scenario. You’re following your trading plan (so far), you’re following your entry strategy, and all is well. You see the right trade that matches up with everything, NZDUSD (as an example) is poised to go up. You follow your equity management rules and enter the position with a safe lot size, and a stop loss that complies with what your technicals tell you and that doesn’t risk too much equity. You hit the button. You’re in!

And now the problems start. The trade starts going against you, but you’re disciplined, right? No worries, this is why you have a stop loss. And why are you staring at the chart anyway? Go do something. Maybe listen to some G’n’R.

Next day. Wow. You were right. Look at that NZDUSD go! Hasn’t gotten near your limit yet, but you’re in positive territory. You da man!

Third day. Oh, man! It’s negative again! Should you have just taken those profits yesterday? You start second guessing yourself.

Fourth day. It’s close to break-even, which is a a relief. At least you’re not losing on the trade anymore. Why is this taking so long? Maybe you should get out now, at least you haven’t lost anything, though you haven’t made any money, either.

Fifth through tenth days. It’s all of the above in an endless cycle.

This can go on for a while. And many traders do allow the market to get to them. Some take a small loss on the trade at some point. Or a small win. Bottom line is, if it was a good trade when you got into it, and nothing has happened to change your view other than that the trade isn’t moving as fast as you’d like it to, then Patience is your best friend. You have a stop and a limit. You set them where you did for a reason. They made sense based on the strategy and your trading plan. Respect them.

Day X. The trade not only hits your limit, it actually exceeds it by a fair number of pips. Well done! You nailed that one!

Except… Were you still in the trade? Or did you let the market play with your head? Many of my fellow traders confess to me that they fight this battle every day. We can help quiet those voices in your head so you can hear your genius. Patience will get you to your destination quicker than almost anything else, no matter how long the road might be. If you see a promo for one of our webinars below, you’re in luck, you can still sign up. Join us for a webinar and find out how we can help you with this and many other things.

 


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Founder and Director of Special FX Academy, Andres is now a full time trader, mentor, and writer. In the past, Andres has held director level positions at venerable trading exchanges including New York Stock Exchange, Euronext, and Fannie Mae. Buy his Forex Trading book here!

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