Aspiring traders often think that trading means trading / clicking buttons all the time, but it’s actually the opposite… Doing less / being more patient, is often what is needed. Let’s discuss.
Why are Traders Impatient?
First we need know / understand why we, as traders, are impatient… That way we will be better able to deal with it. There are many reasons we are impatient, some are:
- wanting to get rich quick.
- believing more trades = more money.
- being influenced by others (internet / social media).
- comparing ourselves to others.
- needing to impress others.
- being overconfident.
- having unrealistic expectations.
- we’re living in a world of instant gratification.
With that covered, let’s move on to why patience is needed.
The Importance of Patience in Trading:
Like with any worthwhile endeavor, patience and hard work will be required to become successful; trading is no different. Let’s look at some other areas in trading where patience is required.
Patience is Needed when You Start Your Trading Journey:
- Initially, there will be some degree of learning / researching of how you want to approach trading. This might include things like: coming up with / finding your trading style, finding your trading strategy, back testing your strategy and writing out a detailed trading plan. The more thorough and detailed (and probably longer) this phase, the better your chances will be…. Hence, patience.
- Depending on your financial situation, you might have to start saving for your trading operation… You most definitely don’t want to start trading with scared money. Again, patience might prudent here.
Patience is also Needed when You are Trading:
- Preparing for your trading might be the most important part of your day / week. Thorough preparation is needed. Taking your time here is very important.
- There might be times when you will have to sit out and wait for the right market conditions that fits your trading style.
- Waiting for your setups requires patience.
- Not checking your account balance and charts frequently is important. Be patient.
- You will have to be very patient to let your trades play out. For example: sitting through price swings while waiting for a trade to hit your profit target or stop loss.
- Not jumping into trades because other people are in it and are sitting on big profits while you missed out (FOMO – fear of missing out). Again, wait patiently for your setups.
Impatience is Not All Bad:
I don’t want to make it sound like being impatient is all bad. As described above, patience is most definitely needed when it comes to trading, but impatience can serve in other ways. Some of them are described below:
- It can create a sense of urgency and get you motivated. That’s much better than being complacent and procrastinating.
- Impatience can be the fuel to start taking action. Through action you overcome procrastination and laziness; it can help you become more disciplined. Taking action is good.
- It can help you being proactive.
- Being impatient, hungry, or excited to start something may also mean you love doing that something. It might mean that you found your passion and its worth exploring to its full extent. Finding your passion is truly a blessing.
Impatience can be good, as long as you make use of it where and when it matters.
Finally:
Patience in trading is very important, it truly is a virtue. I’ve also touched on why impatience can be good for you. In the end, you know yourself best… So you will know where you must practice patience and where you can be more impatient.
Also, thinking long term, while having a solid plan in place for where you want to go and how you are going to get there is a great way to start cultivating patience.
Thanks so much for reading. All the best with your trading.
Trading SOS SOS