The traders follow the rules of taking action every day and working 12 hours a day is the only way to get maximum profit and success. But with trend trading, it proves to be wrong and the opposite is true. Over trading is most of the time, the main reason for the failure of many traders. On the other hand, applying patience and doing nothing is sometimes the most profitable way of trading.
In this article, you will learn about how you can be more successful in applying patience for trading.
Let's start with taking action, taking action does not mean taking live trades. It simply means start learning, find you, advisor, back test their strategies, go through educational videos. These simple things help to execute strategies. Also, there will be an idea of when not to execute the strategies.
Have patience when waiting for a setup, talking about the trend traders, your edge is present when trends are in play. There will be far higher chances of losing money if you trade when the trends are not there. Therefore, when the trend is not there, stand aside, simple. The problem with most of the beginner is that they believe that trading is done to make money. Yes, it is true, but it is not the complete truth. Going for trading helps you to make money overall. But not taking trades when there are no trades to take is essential for capital preservation.
Allowing winning trades Mature - Winning trades for months at a time, this is the time it takes for trends to materialize and for those trades to accumulate good returns.
But it’s been absorbed, new traders reduce their winning chances and trades short and let their competitors run. Letting your competitors run is down to the psychology of accepting you are wrong or realizing the pain of an actual loss. Whereas, taking profit early is down to wanting instant gratification.
Your patience is essential to let your trades mature. Getting early is not the way to trend trade profitably. It's about the small handful of home runs that make up for several small losses. The main motive is that cut your losses and let your winner run the race. It is as simple as that.
Long Term Growth
If you have a large amount to invest in stocks and have mastered the knowledge, you can create your income stream fairly and easily. But many of the investors don't have money in their trading account to realize their goals straight away.
Therefore, it requires your patience to compound your account if you want to have long term growth. In the same way, you can safely double your account every month regardless of what the markets are doing is foolish. Once an understanding of realistic expectations of trading, develop patience and discipline, then becoming a successful trader is very achievable.
Time to change
If you are started your trading and have a hard time in the market, it is time to change.
SMTI India is spearheaded by Dr. Seema Jain (Ph.D. IIT Delhi). She is an active investor in stock market, educationist, trainer & Life coach. She is dedicated to research and analysis of stocks for past 15 years. She is extremely passionate to educate about investing in stock market correctly.