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Why We Need to Be Patient in Trading
Traders always want their positions to go straight towards their expected direction. However, the price always moves in waves up and down even in a certain trend, and that’s why patience in waiting for the right entry is necessary. Most traders have basic skills but not all of them can make a good decision at the right time and right place. The ride can be too short or worse, the market wave can knock the traders out.
The trading opportunities can appear in the continuation of the present trend or in the reversal of price. Normally, the trader has to carefully observe the price movements then marks the noticeable patterns, remarkable levels, and use technical indicators to analyze before placing the orders.
Analysis process takes time surely but its reward is considerable. A careful and meticulous analysis always results in a more precise decision.
Patient to not Rush and be Panic in Trading
A piece of bad news for all new traders, you cannot win all your orders even when you are an expert. No matter how good your strategy is and how correct your trading decision is, the market can still turn against you sometimes.
In the small scale, it can be a small oscillation before prices get back towards your expected direction. In the bigger scale, it can go against your prediction.
Don’t be afraid. If the situation goes dark, your stop loss level will do its duty. Your tactic has been through many tests, your risk management still gets your back. You just can’t lose all of your money within one or two positions so there is nothing to worry about.
If the market totally goes against you, the only thing you can do is to cut your losses and reassess the market. A spontaneous revenge order just simply makes everything worse. Luck is something you should have but the precision is the key you must have and it can only be gained by patience and calm.
When having a series of losing trades, you should take a break and go outside for a while to reduce stress.
If you keep losing, maybe your system is not proper; it’s time to stop trading to reconstruct your system. Don’t worry, a proved system just needs a few adjustments. But once again, your patience is challenged and you must pass this psychological test.
How to be Patient?
The first lesson to be patient lies in the first section. Yes, it starts since you decide to learn to trade in the right way. The learning process includes many readings, watching, testing with no money earned. Its boredom absolutely tires you but it is exactly when your patience is built.
Have you ever wondered why we learn everything so quickly when we are small? That’s because we don’t have many things to concern so we can focus on our works. Similarly, if you want to learn to trade in a shorter time, you must remove everything that may distract you, of course except healthy habits like exercises, sports, and others.
When trading, you should also record all your activities:
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● Why did you enter the market?
If you notice, all of them slow down your whole process but it is the point: you have to do everything step by step to achieve many small goals. Besides, it calms your haste and buys you some time to make sure you do everything precisely. Gaining patience is hard and takes time but giving it up is too fast and easy.
The Bottom Line
Trading is a long run, and trading winners are not the fastest but the most durable one. And so, patience plays the indispensable role; it is earned since you begin to learn and fostered through your trading time. It would be tough but the prize for it is giant.
If you find it hard to be patient, you can always seek help from experienced advisors at Finmax. They can give you valuable advice on being patient when trading.
On a small scale, this may be a slight fluctuation before prices return to the expected direction. On a wider scale, this can go against your forecast.
Do not be afraid. If the situation goes out, your stop loss level will do your duty. Your tactics went through a lot of tests, your risk management still gets your support. You just can’t lose all your money in one or two positions, so you have nothing to worry about.
If the market goes completely against you, the only thing you can do is reduce your losses and reexamine the market. The spontaneous order of revenge just makes things worse. Luck is what you should have, but accuracy is the key you should have and can only be obtained through patience and calmness.
Having a series of losing trades, you must take a break and go outside for a while to reduce stress.
If you keep losing, your system may be out of order; it’s time to stop trading to restore your system. Do not worry, the proven system just needs a few adjustments. But once again, your patience is being tested, and you must pass this psychological test.
“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”
12 Reasons Why Having Patience in Leadership is Important
Why is Having Patience in Leadership Important?
What makes a leader effective in all the efforts to make the teams succeed? Why does the patience in leadership play such an important role?
While many of us focus on different approaches and skill sets, we tend to forget the main driver behind the leader’s success. Is it true that patience is a virtue?
I discovered patience at the height of my anxiety issues while switching career paths and industries. It may have been one of the most daunting tasks I have ever taken and to this day, I still remember clearly every step of the way.
I haven’t followed any particular guideline in practicing patience, nor was there anyone to nudge me in the right direction. Yes, I am one of those self-taught practitioners, but I invested an extensive amount of time in research and testing.
The following reasons are not listed in any particular order, but they do complete an entire picture if practiced together.
1. Gain and Show Respect with Patience
Nobody wants to work with someone they don’t know. After you do get to know the person or a team, it takes time and effort to give and gain respect from fellow team members and co-workers.
Since gaining and giving respect can’t be achieved overnight, leaders should employ patience. Being able to patiently approach people and in return gain their respect will be mutually beneficial to both leader and team member.
Respect combined with patience is a long-term commitment and it has to be worked on continuously. One has to understand that once you do get respect, you need to nurture it and encourage others to do the same.
2. Improve Productivity with Patience
Each team member can produce results at a certain pace. Likewise, the entire teams can be productive as much as the individuals within that team.
Rushing your team members can hamper productivity as it sometimes puts unnecessary pressure on them. Although leaders should encourage their team to perform and be more productive, approaching each member with patience can be more efficient.
Improving productivity with patience will be beneficial both short and long-term. It will also provide more confidence to your teams, as they will know that their leader is patiently stimulating productivity of each team member. You can achieve better results with purposeful guidance and patience.
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3. Provide more Freedom with Patience
While developing teams and individuals, you should consider providing room for improvement. If you lack patience to provide freedom for your teams and encourage progress, they might consider looking for opportunities elsewhere.
Since different people adapt at different speeds, giving them the freedom to process all the information, they will be more receptive to change. This does not mean that you will completely leave your team on their own. It just means that you will leave “breathing” space for them, which will result in more trust, and therefore, better team.
4. Develop Positive Attitude with Patience
Being a leader means that you will be tested in a difficult situation, and your ability to be patient will be essential. During those times, as a leader, you will need to take action and develop a positive attitude.
That positive attitude will not only help yourself, but it will be transferred onto team and organization. Teams and individuals will sometimes depend on the leader to display positivity. At those moments, having patience will motivate your team and its members to be positive.
5. Improve Time Management with Patience
As a leader, you will need to be proficient in time management. You may be tempted to push things and people beyond their capabilities to meet deadlines. That can result in a dissatisfied team members and ultimately a dysfunctional company.
You can improve time management skills of yourself and your team by applying patience when appropriate. Sometimes you need to slow down and maximize the time allotted, as it will produce more efficient results.
That will lead to team satisfaction and will encourage individuals to improve their own time management skills.
6. Teams Grow with Patience
Building teams and individuals require appropriate time and effort. Leaders that don’t recognize this may have difficulty growing their teams.
With patience in leadership, the right amount of effort and by taking proper steps, you can strengthen your team. This requires you as a leader to remain committed and be persistent. The key to this goes back to being patient.
Grow your team and encourage them to practice patience themselves. They will refine them as team members and it will grow the entire company.
7. Allow Recovery Time with Patience
Your team might be comprised of high performers and achieving amazing results, time over time. Just consider and remember that your team members are still human and that they have certain needs.
Over-fatigue can be detrimental to individuals, teams, and companies. As a leader, you need to recognize when the time is right to provide some breathing room. This refers to allowing recovery time and rest, which is a crucial component of any successful team.
Even the top-performing athletes take time off to recuperate and heal, which will help them in the long run. Thus, your team members should be treated like top performing athletes. Have patience for your team members and allow them decent recovery time.
8. Adapt to Change with Patience
Successful companies grow and change over time. Individuals and team members change and adapt at different speeds. Some of the teams may adapt quite easily, while others may take additional time to comprehend these changes.
Leaders must recognize the importance of adapting to change by applying patience in appropriate ways. Sometimes, individuals may be caught off-guard if the change was sudden and unplanned. Have patience for those who need more time to adapt and your team will develop more effectively.
In the end, be ready to adapt to change yourself and grow as a leader, together with your team. It’s all achievable with enough patience.
9. Build Reputation with Patience
Reputation is by definition an opinion or belief about someone or something. In leadership, reputation has to be built over time. It’s probably falling under one of the more difficult things to build upon.
You can be become a well-developed leader and differentiate yourself from the others through patience. Sometimes, reputation can be a fine line that some cross in the wrong direction. Be careful to build and maintain a positive reputation.
Your team will be more confident in your abilities if you are displaying the right attitude, which will ultimately result in reputation build-up.
10. Achieve Greater Results with Patience
How many companies do you know achieved success overnight? As Eddie Cantor said: “It takes 20 years to make an overnight success.” Results are built over the course of time and are a continuous process.
Your team can understand this concept better if you, as a leader guide them appropriately. Some companies and their leaders believe that they can achieve greater results by developing company culture. For that alone, you need to dedicate yourself and your team members to exercise patience.
Once you instill the importance of patience to yourself and your team members, your leadership skills will guide your team to greater results.
11. Make Better Decisions with Patience
Leaders need to make decisions. It is in their job description. Decision making can be one of the most difficult tasks leaders can encounter.
Lack of patience in making any decision can influence your team and company in a negative way. That doesn’t mean it is impossible to make the right decisions. Leaders shouldn’t be making decisions during their inconvenient times.
If something is troubling you, take extra time before making that final call. Over time, you will learn to utilize patience and make better decisions. That will produce further growth for your team members.
12. Improve Listening Skills with Patience
Successful leaders have amazing listening skills. That is one of the main reasons why they are successful. If you recognize this and put it on your priority list, there’s a definite chance that you will grow as a leader.
Be careful to differentiate hearing and listening. It’s important to have the patience to listen to others as you will be able to fully understand what that person wants to say. Since communication is a 2-way street, it requires you to listen, understand and then respond to successfully communicate ideas with others.
Leaders can further develop if they improve listening skills with patience. Learn to be the active listener.
Why Patience in Leadership
Everything I learned about leadership was through patience. All successful leaders I met and spoke to practice patience every day. That gives me and my fellow leaders more energy to continue developing our teams.
While it may be tempting sometimes to make decisions faster, thinking it will be more effective, hold yourself back for a moment. Acknowledge that you are aware of the decision-making process and time it takes to make any decision.
Grow together with your team by dedicating enough effort for individual and team development. Don’t forget to take a breather occasionally and allow your team to recover. While doing that, maintain a positive attitude and be adaptable to change.
Build a reputation by infusing integrity into your daily routine and let it become your second nature. It will show respect to everyone in your team, including yourself.
If you are looking to become the best you can be when it comes to leadership, recognize the importance of patience. Make purposeful decisions, take time and be a great leader.
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6 Traits You Need to Develop as a Day Trader
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Day trading is not just about finding a strategy, practicing it, and then making oodles of money. Day traders develop certain traits, which in turn allow them to implement a strategy effectively, in all market conditions. When someone starts trading, it’s unlikely they will possess all these traits. They may be strong in one, two, three, or even four of them, but might need to work on the other traits. That’s good news. It means successful traders aren’t born; they develop through arduous work that includes these traits.
1. Day Trader Discipline
Discipline is a key trait every trader needs. The market gives you infinite opportunities to trade. You can trade thousands of different products, every second of the day, yet very few of those seconds provide great trading opportunities. If a strategy provides about five trades a day, and stop losses and targets are automatically set for each trade, then there are only about five seconds of actual trading activity during the course of the day. Every other second is a chance to mess up those five trades, taking more trades than you should, getting distracted or skipping trades, prematurely exiting the trades you are in, or holding trades too long.
That doesn’t mean your trades only last five seconds. Five seconds of activity means it only takes one second to place an entry order, and then you need to sit on your hands again. If you adjust your stops and targets, this may take another second.
The bottom line though is that your actual trading time is minuscule each day, even if you’re an active day trader. The rest of the time you need to sit there, disciplined, waiting for trade signals. When a trade signal occurs, you need to act without hesitation, in accordance with your trading plan.
Traders require the discipline to do nothing when there are no opportunities present but must still stay alert for potential opportunities. Then, they need the discipline to act instantaneously when trading opportunities occur. Once in a trade, traders require discipline to follow their trade plans.
Patience is related to discipline. As discussed above, day trading (and trading of all types) requires a lot of waiting. When a trader is entering or exiting the market at inopportune times, they will often say “My timing is off.” One could also say “My patience is off.” Jumping into, or out of, trades too early or too late is a rampant problem among new traders.
They simply haven’t developed their patience enough to wait for the great entry and exit. This goes hand in hand with discipline, and you need to be patient until there is a call to action, then you need to have enough discipline to act without hesitation.
Traders require patience in waiting for their ideal entry and exit points (based on their strategy), but when the moment calls for it, they need to act swiftly. There is a constant seesaw between prolonged periods of patience, followed by split-seconds of action, which are then followed by patience, and so on.
You will never see two trading days that are exactly alike. This poses a problem when someone only looks at textbook examples of a strategy. When they go to implement it, everything looks different than it did in the example. Maybe there is more volatility, less volatility, a stronger (or weaker) trend, or a range.
Successful traders implement their strategies in all types of market conditions and know when they shouldn’t use their strategies (for example, during a range if they use a trend following strategy). This requires mental flexibility. A trader must be able to look at the price action of each day and determine the best way to implement (or not implement) their strategies, based on the conditions that are present that day.
Traders must be able to implement their strategies in real-time, in all market conditions, and/or know when to stay away. Not adapting to current market conditions will often result in a swift drawdown of capital.
4. Mental Toughness
You could also think of this as being thick-skinned. The market will constantly throw losing trades at you, and you need to bounce back. If you feel discouraged every time you lose a trade, or your strategy fails to produce the result you expect, your life will be miserable. Losing trades are constant; most successful day traders will have losing trades every day.
The difference between a successful trader and an unsuccessful one is that most successful traders win slightly more on their winners than they lose on their losers and typically win slightly more often than they lose. If your wins are much bigger than your losses, you may only need to win 30% or 40% of your trades.
Other traders may win 60% or 70% of their trades, but their wins may be equivalent to, or only slightly larger than, their losses. In either case, losing trades happen. Daily profits can still occur despite those losses, but only if the losing trades don’t discourage you. If losing trades cause you to lose focus, you’re more likely to miss (or skip) the next trade, which could be a winner.
Losing streaks also occur. Traders must stay focused and rational through a losing streak and not let the loss of capital affect their judgment (which will make matters worse). It requires mental toughness to stay focused on executing the trading plan or to realize that the market isn’t providing you with good opportunities for your strategy.
A trader must withstand a continual barrage of punches from the market. Losses are a fact of trading, but it’s how we act after some tough trades that make all the difference. After taking losses, move on and continue following your trading plan. If you are following your plan, but you just keep losing, market conditions likely aren’t right for your strategy. In that case, walk away until they are. Sometimes being mentally tough means making the hard choice of not trading.
Initially, you’ll likely get some help with your trading, whether it’s from reading articles or books, watching trading videos, or receiving mentoring. Ultimately, though, it’s you who will place your trades and determine your own success.
Eventually, traders must develop a sense of independence, no longer relying on others. Most traders choose this path because they find it to be the most profitable. Once you have a trading method that works for you, you don’t want other people’s opinions. You do what works for you, and that is that.
Other traders must learn independence the hard way. They bounce from mentor to mentor, or trading book to trading book, always feeling like they are missing something. Or the service they subscribe to shuts down, and now they have no idea how to trade because they relied too heavily on someone else. If you develop independence, taking responsibility early on for your own education, profits, and losses, you won’t have these problems down the road.
Independence isn’t taking on the world alone. Get help whenever you need it. Independence is just developing a trading style that works for you (whether someone else helps you or not). Independence is about working to build your own personal toolbox, so you can remedy your own trading, instead of relying on others (who may not always be there when you need them).
If you are just beginning your trading journey, start developing your independence now. Take the information others to offer, analyze it for yourself, make it your own, and master it. That way you don’t need to rely on them anymore.
6. Forward-Thinking Trading
Day traders can’t be stuck in the past. While day traders use data from the past to help them make trading decisions, they must be able to apply that knowledge in real-time. Like a chess master, traders are always planning their next moves, calculating what they will do based on what their opponent (the market) does.
As discussed in the adaptability section, the markets are not static. We can’t say we will buy at a certain price in five minutes, and then ignore all the price information that occurs during those five minutes. Day traders are constantly planning their next action, based on new price information they receive every second. They consider different scenarios that could play out and then plan out how they will implement their trading plan (entries, stop loss, targets, trade management, position size) under each of those various conditions.
Talk yourself through what needs to happen for you to enter a trade. This will keep you focused on the price action, as well as reiterate your strategy within your own mind. As a trade approaches, consider what could happen while you are in the trade (doesn’t move, moves a lot or little, moves quickly for or against you, moves slowly for or against you), and how that will affect your psychology and/or trade.
Go through what you will do in each scenario so that you can quickly navigate the changing market conditions. That is forward-thinking, and with practice, it can become almost instantaneous.
Forward-thinking is knowing what you will do no matter what happens. This allows you to act decisively, without hesitation. Have a defined set of protocols to use in rare but inevitable events, like losing your quote feed, for example. Forward-thinking takes practice and consumes a lot of mental energy at first, but the more you practice forward-thinking, the quicker and easier it becomes.
The Final Word on Day Trading Traits
Most day traders aren’t born with all these traits, rather they possess a few and must work rigorously on the others. You can learn these traits, which is a positive thing because it means successful day trading is determined by you and not necessarily your genes. Some of us are prone to certain weaknesses, but we can offset these with strengths which can help us mitigate the damage of our weaker qualities.
Take a personal inventory of what qualities you need to work on and what your strengths are. Ideally, take this inventory based on trading experience, since trading tends to expose vulnerabilities and strengths we didn’t know we had. The personal inventory requires looking at your discipline, patience, adaptability, mental-toughness, independence, and forward-thinking.
The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
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