Improve Your Day Trading Strategy With increased Patience
If you would like to make more money as a trader, you should understand that you can actually improve your day trading strategy with increased patience! What we have found in our years of attempting to teach price action trading to others is that most losing traders are far too impatient when it comes to day trading. Most new or unprofitable day traders are too busy looking for a trade and slinging entries into the market like a gunslinger at the OK Corral. I consistently get emails during the trading day from losing traders, and when I look at their entries, it becomes instantly obvious that they are so busy looking for a trade entry that they can’t really see what is happening on the chart right in front of their eyes.
You see, a smart trader is stealthy and has great patience, while an inexperienced trader is just the opposite. A smart trader realizes that the best way to profits is by not entering the market many times during the day, but rather a smart trader understands that he or she has to wait on the best set ups, or the ones that give them a high probability of a winning trade. Sure, there are countless winning set ups every day, but a smart trader will watch a good trade pass them by while waiting on the “best” trades, or trades that put the odds so highly in their favor that a losing trade is almost non existent. That doesn’t mean that these smart traders won’t still have losing trades, but they will have many more winning trades than they have losing trades, and that translates into success as a day trader.
If you have watched any of our video chart lessons, then you have certainly heard me talk about this multiple times. Having patience is such a key piece of learning to be a profitable day trader that I can’t stress this part enough really, thus this post. An amateur trader is consistently looking for an entry and looks at every move in the price action as a possible trade, while a seasoned and profitable trader will do just the opposite. The profitable trader will look at the overall picture and will look to enter when and if prices reach some particular point on their trading chart. They are scanning ahead and reading the price action, while understanding what is going on with the chart in front of them. Can you see the difference here, and which one best defines your trading style?
Below is a small excerpt from an article that discuses patience in trading that we found posted at www.marketkeytraders.com. Here is what that article had to say in relation to being patient while day trading.
All winning day traders possess a certain degree of patience. They wait for ideal opportunities in the same way a sniper waits to take a perfect shot. Without a high probability of success and a pre-planned avenue of escape should he miss or were something else to go against him, the trader, like the sniper, will have a mighty short career. The successful trader sits and patiently waits. He watches the movement of his indicators. He tempers his impatient urges to make entries into the market with reckless abandon. When the moment arrives, he is there, waiting: one shot, one kill. He has achieved his objective and exposed himself to the least possible amount of risk.
A trader may find it difficult to become more patient. It requires, first and foremost, that the trader admits his own impatience, something not an easy feat for many people. Once the trader has come to terms with his own impatience, he must determine the way in which his impatience affects him negatively as a trader, and actively to correct the imbalance. The trader should examine himself from the third-person perspective, as if watching a TV show, to try to determine how impatience impedes his ability to trade successfully. Is his impatience exacerbated by fatigue, hunger, risk, or all three? By determining which specific variable or set of variables causes him to act rashly and with emotion, he can drastically improve his standing in the market. You can read the rest of the original article here.
Personally, I think impatience in day trading stems from nothing more than a lack of understanding of the markets. Most traders don’t know how to read the price action, so they have no real understanding of why they should or should not enter the market. These impatient traders are really doing nothing more than gambling when they are trading, and in most cases, they are entering at the most inopportune time in order to ensure a successful winning trade, and ultimately, this is why they lose money as a trader. You can break this habit by learning to read a price chart. By learning to understand the language of prices, you will actually be able to understand what prices are doing and why. Is this easy? No, but it is a skill that can be learned by anyone if they have the right information and the willingness to put in the necessary work. Like learning anything difficult, it doesn’t come easy, and it may not come over night, but if you can learn it, the rewards can be great!
Hopefully you can see the benefits and the importance of why we want you to improve your day trading strategy with increased patience. By learning to be patient, you can do two things. One, you can reduce your number of trades, which will help with the problem most new traders have of over trading. Secondly, you an improve your winning percentages by reducing a lot of bad entries that should never have been taken. You may not start making money immediately, but if you can force yourself to find your entry points (the best entry points) in advance, you will force yourself to learn to read the price chart. After all, if you don’t know what’s going on in front of you on the chart, then you can’t find trades in advance can you? We believe that price action trading gives a trader the best opportunity to trade profitably and to learn to be a patient trader, so be sure that you consider learning this strategy if you want to become a profitable day trader. Regardless of how you do it, make sure you learn to have patience in your day trading strategy! Learn how you can become a price action trader by checking out our information at http://priceactiontradingsystem.com/pats-price-action-trading-manual/.