What does patience mean in trading?
What does patience mean in trading?
As a trader, we need patience while trading.
In trading, patience is required at four levels:
A) You need patience to learn how the market moves and how to trade it—”Learn” first before you “Earn.”
B) You need to have patience and do a thorough analysis before taking a trade. Do not rush into trades.
C) You need to be patient and wait for your setup or the right opportunity. Be a sniper, not a machine gun, opening trades at each market movement.
D) You need to be patient and let your trade hit your target—do not forget to let your winning trades run and cut your losses immediately.
Do you have something to add?
It’s on how you will manage the risk, people tend to make trading without proper execution or plan with their trades, which is one of the basic fundamentals that a trader must need to prepare for the position they keep watching, yes every position you made there’s a profit but if you feel doubt with your position and you know there are some changes with the market now its up to you if you keep willing to take a risk or not. Base on my experience in trading ill do make a position and keep an eye until the signal or pattern given to me with the help of the indicator that’s the time ill go entry, I will not make a move that will just become regrets and waste of money.
I agree with A and B, C is a repetition, while D is not true for all trading conditions. It is not a must you have a target, instead, you may have a trading goal. I am a flexible trader so I do both. There are times I have my target (either placing the TP or closing it manually) and there are times I have my goal (for example: to close the trade when an opposite outlook is seen on the chart). There are other examples like when scheduled news is about to be released or released news is not in the favour of your position, and many more.
Using low leverage also means patience. Using just little amount of money to trade also means patience. Another important one which you mentioned is to enter the market at the right time. Some traders will enter the market at the wrong time.
There are time that you will enter the market at the right time but the market will still be against you. This is where low leverage and using the money that you can afford to lose is very important.