Traders always are working on a double edged sword; Small mistake committed by them can turn out to be large loss for their trading account. Trading is a high risk profession and you should always be on your toes else one move by market against you, can wipe out your whole trading account. A trader should be disciplined, have a sound risk and money management and should be very strong in trading psychology. Lets discuss one more quality a trader should have, “Patience”
I have seen many traders losing money and busting their trading account due to Lack of Patience. Patience is required while entering the trade, holding the trade and lastly in exiting the trade. You try to hurry in any one of the 3 scenarios you either end u losing money or exiting well before the trade shows its true colors. It’s a well known facts markets trend only 20% of the time, and, from my experience, I would say that this is an accurate statement. So think about it, the other 80% of the time the markets are not trending in one clear direction.
Big money is always made when you SIT ON THE TRADE and market test hell of your patience to give fruitful results. So any time frame you trade there are only 2-3 big trades which can come up and rest will be scalping trades. For example, if you’re a long-term trader, there are typically only two or three compelling tradable moves in a market during any given year. Similarly, if you are a short-term trader, there are only two or three high-quality trade setups in a given week.
All too often, because trading is inherently exciting (and anything involving money usually is exciting), it’s easy to feel like you’re missing the party if you don’t trade a lot. As a result, you start taking trade setups of lesser and lesser quality and begin to over-trade.
How do you overcome this lack of patience?
Well its difficult but certainly achievable with lot of practice. Keep remind yourself that every week, there is another trade-of-the-year. In other words, don’t worry about missing an opportunity today, because there will be another one tomorrow, next week and next month.