Patience is the Key to Long Term Profits

Filed under: Learn Forex Trading |

One of the secret ingredients to making long-term profits in the forex market is something that is not talked about very much – having patience. Many beginner forex traders are too impetuous and trade too often. They are too keen to be involved in the game, and they take weak and often non-existent setups. What they be doing is not running into no man’s land screaming, but rather, they should be waiting and watching like a sniper and pick off their enemies carefully. One of the hardest things to do is to wait, and watch, and do nothing. Sometimes you can wait and watch for so long that when an opportunity comes along, you are so used to waiting that you become frozen and you don’t take the opportunity.

 

It is also important to have patience once you have entered a trade. Many beginner traders feel the need to meddle with their trades once they have put them on. They move to breakeven as quickly as they can because they are afraid of taking a loss; and by doing this, they do not let their trading edge pay off. It is difficult to watch a trade play out once it is on. But if you have a stop loss and target (and perhaps even a trailing stop) then you would be better off letting the trade play out in a ‘set and forget’ type strategy. Go and play some golf or watch a movie! Do anything so that you are not obsessing about your trade and meddling with it every five minutes.

 

A good rule of thumb is: “When in doubt, stay out!” It is much better to be on the sidelines watching than to take a weak trade and make a loss. So why not exercise a little more patience with you trading? It may be the edge that you are looking for.

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