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Exercising patience is necessary for successful trading.
By Tom Long | November 20, 2007
When the volatility slows in the FX markets like it has this week, I will usually get emails from FXCM clients who have taken one of our FX Power Courses asking me what they should do. They opened a trade and watched the market move sideways for a few days and to them, this is like watching paint dry. Sure it can be boring as everyone likes to have their trade move in their direction immediately without a reversal of any kind. But we don’t always get what we want and when we don’t, we find out what kind of traders we really are. Most of these students were either long the EUR/USD or short the USD/CHF because we teach them to trade with the trend. Many of them also exited the market near their entry point because they lost patience in the trade as the market was not really moving up or down. Those who exited also watched as the market broke out of the range last night enough to give most of them the profit they were originally looking for in their trade. But since they lost their patience, they did not profit. This brings us to one of the rules of trading we talk about in our FX Power Courses: Never get out of the market just because you have lost patience or get into the market just because you are anxious. Easy …right? Actually it may be one of the most difficult aspects of trading. Having the patience and discipline to let the market determine when to enter or exit takes practice and confidence. Those who have it profited last night, while those who didn’t ended up just watching the market movement. In order to move up to the next level of trading, you have to have the patience to let the trade play out. Your profitability depends on it.
noneTopics: Don't Trade Like This |
November 28th, 2007 at 5:35 am
does your forex manager need to be licensed to trade your account.
please answer me this question.
thank you