| Futures And Forex Trading Secrets: Being Patient For Profits |
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| Written by Jeff Niles |
| Sunday, 19 September 2010 18:59 |
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Meltdowns in trading accounts are most commonly linked to basic strategies and ideas being removed from a traders thought process. Often traders ignore the warning signs these strategies highlight because they feel they aren't advanced enough to actually help them. In the end, the only strategies a successful trader needs to concern themselves with are the rudimentary ones.
Meltdowns in trading accounts are most commonly linked to basic strategies and ideas being removed from a traders thought process. Often traders ignore the warning signs these strategies highlight because they feel they aren't advanced enough to actually help them. In the end, the only strategies a successful trader needs to concern themselves with are the rudimentary ones. An important aspect of trading that is often misunderstood by novice and experienced market donors is the idea of patience. They hear about it, read about it, and they think they understand it but they ignore it because it seems to simple an idea to be of any effectiveness in our modern complex market systems. Let's start by getting one thing straight, when we say patience, we are referring to the skill of trade stalking. It is a skill. It is hard work like anything that is worthwhile and it takes dedication to master the art of patient trading. Let's take a look at how retail traders continually donate to professional traders by not understanding the role patience plays in high probability system trading. Getting In Too Early Retail traders aren't confident in their ability to read price action in the market which in turn causes them to be uncomfortable waiting for all of their system signals. This lack of confidence leads them to jump into the market too early. They see price approaching their planned entry level but at the last moment think it isn't going to happen so they make a rash decision to enter anyway. Inevitably what ends up happening is the market behaves as it should and a minor retracement occurs to exactly the level the trader was waiting for but now instead of profiting from the move they are taking heat on the trade because they didn't have confidence in their ability to read the market and they weren't patient enough to confirm their bias using the proper protocol. If they manage to ride out the heat and the trade works out they lose profits and if they get stopped out they curse the system even though they themselves didn't follow it. This series plays itself out time and time again in the markets. Getting In Too Late The flip side of jumping in too early is getting in too late. Typical amongst traders who have just experienced a draw down in their account, not pulling the trigger can have disastrous results. Patience doesn't mean waiting for all the stars to align and then pulling the trigger. It simply means waiting to see your set ups and then entering the trade and your predetermined level. That is how a patient trader operates and if you follow that principle it will help you achieve great results inside the markets. Holding On Too Long Patience can also work against traders who tend to hold on too long. Just like individuals who wait for all the right entry signals to be lined up just perfect, traders who hold trades trying to squeeze extra profits are usually left disappointed and frustrated. Being patient means waiting for your target and then intelligently exiting at that level. Don't let a trade that is profitable work against you because you were trying to squeeze a few more dollars out of it. Take profits and wait for the next set up. Retail traders will always struggle with patience. Many are drawn to trading for the wrong reasons and think it should be fast paced and exciting. Unfortunately, these traders probably won't last long enough to full understand how wrong they are. Trade your plan and have the discipline to wait for your high probability set ups and you are well on you way to becoming a profitable trader. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about forex trading. Stop by Jeff Niles's site where you can find out all about forex strategies and what they can do for you. |