Forex Trading And Patience

Much has been said about the role patience plays in Forex trading. In fact, it has become almost cliché to talk about patience and how important it is to traders, both veterans and beginners alike. We need to assess just where patience is actually exercised in Forex trading and why it is so critical to our success.

In one respect, patience is very much a euphemism for reason. Reason breeds caution, stability, and clarity. On the other hand, the antithesis of reason is emotion. The most fundamental lesson any Forex trader can learn is that reason must take precedence over emotion. If one cannot put an immediate hold on his/her subconscious psychological reaction(s) and learn to avoid visceral responses to outward stimuli then it will be tough to succeed in Forex trading.

A skilled Forex trader has strong discipline and will never enter into trades for emotional reasons. Patience is a virtue in all our human dealings and plays no less a role in Forex trading. Successful traders wait for the right moment to trade while amateur traders will enter and exit the market frequently often on a whim. This is because they don’t understand their tools, software or indicators or haven’t mastered the own psyche. If you are to succeed at trading Forex you must be able to differentiate between high and low-probability trades and avoid trading to ‘take revenge’ on the market or to satisfy your own internal need to be entertained.

Good trading typically involves a lot of waiting, and patience is required to keep our human impulse for excitement in check. To the people who actually make money in Forex, trading is boring and extremely repetitive. I liken Forex trading to hunting. We are the hunters and the Forex market is our pray. We don’t want to alert our pray to our presence. We must wait till our pray is at its weakest and most vulnerable. That is when the chances are most in our favor. That is why we must have patience. If you’re willing to wait 11 hours hiding in a tree for one chance to shoot at a deer or elk, then once you master the rules you are probably well-suited to succeeding as a Forex trader.

Make sure your trades comply properly with your rules-based trading plan. It is imperative to have a well-defined trading strategy in advance. If you do have a trading plan you will lose all your money sooner or later. If you cannot control you urge for revenge or embarrassment at a series of losses and counter it with reason in the form of patience Forex trading is not likely for you. Anything else is gambling. Spontaneous behavior has no place in trading. If you are sick or drunk and don’t have the patience to wait till you are better/sober to trade then you have a problem. If you lose more than 10% if your account in a day you are not using patience.

In any industry, the hallmark of a professional is he/she who is willing to use their skills at the right time, in the right way and in the right amount. Precision, efficiency and coherence are all a part of patience. Patience does not just equate to waiting, it is a culmination of numerous positive attributes that when used properly equate to reason. Reason is something that can easily differentiate between good and bad behavior and that which will lead one to success or failure. Master your own mind and you can easily master Forex.

By: LeverageFX

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