Not a secret! Forex Trading Key: Patience (1)
This is no secret to successful forex trading . Believe me, it’s not a secret at all. Indeed, this is one of the keys, but – again – not a secret at all. Everyone knows that. In an article on this website I have quoted one of the Arabic proverbs: “man shobaro, zhofiro”. Who is patient will be lucky. Really similar to forex trading.
So, it’s really not a secret. Patience as the key to success in running a trading strategy has been recognized by everyone in this trading universe. Unfortunately, this one “skill” is the most difficult for a trader to learn.
Okay. Patience is indeed necessary. I’m sure you also agree. But what and how to be patient in trading?
In this article we will try to peel it. As stated before, being patient is one of the most difficult knowledge to master. So just consider reading this article as one of your patience exercises, because at the end of this article it is hoped that you will find clues about patience.
This is the first part of two writings. Have you prepared coffee in a cup?Let.
Want to Open a Position? Wait for the right time
Imagine a scenario like this:
As a trader, before making a transaction you must first do your “obligation” to do the analysis and determine in the currency pair where you will look for opportunities. Say you have targeted a certain level and plan to open a buy position if the correction occurs to that level. You also sit in front of your computer while enjoying a cup of coffee.
Uh it turns out … instead of the correction that happened but the price continued to rise.
You then feel annoyed. Correction to the level you want doesn’t happen.You also began to fret, worried about not having time to reach the potential benefits of the rally . Do not want to “miss the train”, you rush to click the “Buy” button.
If that scenario happens to you, that’s a sign you lose patience. At that time, emotions are over you, not logic. Not only do you let go of the opportunity to get a better position, but also you have brutally violated the trading plan that you have worked so hard to design.
When you let emotions control the mind, that’s when you allow yourself to accept disappointing results. Emotional attitude in trading will trigger impatience. Impatience will trigger indiscipline. Discipline causes you to violate the trading plan . Breaking the trading plan will result in destruction. Spooky right ?
Waiting for a Big Catch
There is a foreign television program that shows fishing activities for professional fish anglers. A professional angler knows where a good fishing spot is, which is a place that has a lot of fish. Have you ever thought, if there were a lot of fish there, why bother using fishing rods and hooks? Why not use a net?
For the angler, he does not need to catch all the fish that are there. He just needs to catch some that he really wants and – of course – target big fish. Or at least he only needs to catch the type of fish he wants.
Market, more or less like that. There are many “fish” swimming there, in a sense: many opportunities are created, whether small or large. So actually looking for opportunities is not difficult, but those who need tricks are how to find opportunities that are really good, in a sense: in accordance with our trading plan . If the market offers opportunities that are not in accordance with our trading plan , then you should not waste your “bait” or your capital. Yes, indeed sometimes the “fish” we get is small, but the points are not in “fish size”, but are the “fish” that are in accordance with our trading plan ?
Easily, the fishing and fish metaphors above can be explained like this: trading if and only if the opportunities that arise are really in accordance with your trading plan . Again, emotions play an important role here.Return to the first point: wait for the right time and momentum.
Now, until here, is your trading behavior at least meeting the two criteria of patience above? If so, thank you. If not, at least start with these two things first. In part 2, we will continue to talk about this patience.
Next Article : Not a secret! Forex Trading Key: Patience (2)