Patience and Discipline
As you learn how to trade and put much of this information into practice you will come to realize how vital patience and discipline are to your long term success as a trader. Patience emphasizes calmness, self-control and the willingness or ability to tolerate delay. When starting your trading plan you need to realize that you are starting a new career. Rome, wasn't built in a day and neither will your trading empire. It is important to stick to your trading plan and understand the importance of the compounding of money. Even though your daily, weekly or monthly gains may seem small to you, on a grander scale the equity you build over time by being patient will separate you financially from the crowd. Each trader will likely experience several episodes concerning lack of patience during their career, especially in the beginning. It is very important when exhibiting a lack of patience to write down your thoughts and subsequent experiences into your trading journal. This will help you imprint these episodes on your mind to remind you how detrimental lack of patience is and how important it is to slow down, analyze and have self control.
Lack of patience will manifest itself in many different ways as you journey throughout your trading career. One manifestation is rushing into trades. Many will take trades just to participate in the market. Dependant upon trading styles and methodologies, whether technical or fundamental, many traders battle with the potential of boredom when the market is sideways. Typically, more traders are trend traders, as a result they sit and wait and wait and wait till finally they can't stand it anymore and select trading opportunities outside of their trending system. In order to combat this, traders need to fully understand the profit potential of the market and how it trends as well as their trading system. As traders become more comfortable with the breath of the market they tend to realize the benefits of trading smarter instead of harder. Patient traders understand how the market works and that just because a move may have been missed today it will likely occur again in the near future. Patient traders are smart traders as they take the time to let the trades come to them as they select the best trading opportunities according to the heightened probability of achieving profits through their system. Therefore, understand the market and its potential and how your trading system works in accordance to the market. For many of us this takes many hours of practice and time to become smart patient traders and for this discipline is paramount.
Discipline is simply a choice to follow simple steps according to your personal trading plan and system on each and every trade. No one is born with discipline, nor are there people who are more likely to be disciplined. Discipline comes from your willingness to do what others are not willing to do. Each trading opportunity needs to be broken down into simple steps that you follow each and every time. If the price movement does not match your simple trading steps when analyzing a specific trade then make the choice to be disciplined and stay out of the market. The more you practice your trading system and gain trading experience the likelihood you will learn from your mistakes and realize the necessity of having a plan and working it. Discipline is of key importance in your longevity as a successful trader so strive to make the choice and be disciplined.
Next session, how to overcome fatigue to keep your health and profits when trading!