The Encarta Dictionary defines Patience as “the capacity for waiting: the ability to endure waiting, delay, or provocation without becoming annoyed or upset, or to persevere calmly when faced with difficulties”.
As a trader, it is very essential that you are able to wait when conditions for your entry (according to your trading plan) are not complete or accurate yet. Every beginner trader has the impatient aspect lurking to show its head when you are over-excited in making money from the currency markets. However, the professional traders have learnt to keep this aspect of trading into check such that, they are able to control their emotions and “trade almost like a robot”.
One has to learn to be patient with everything on the forex market. Make sure to give room to your profit to hit, your stoploss should be reasonably placed to give the market the room to breath.
In all, you have to be able to stick to your backtested strategy even when you experience long streaks of drawdowns. Once you know and have tested the profitability of your strategy and know all the statistical metrics, then you need not worry about the fact that you are losing a lot more this time.
I always say that, “The secret to being patient in the forex market is believing in what you know and how you trade.” And that is only achievable with enough knowledge and enough facts to back the profitability claim of your strategy.
Most often, you have to endure losing streaks before finally experiencing the big break you hope for, Profit. And that is what makes this market and profession awesome, “The fact that no-one wins always”
Patience in trading does not matter if you are a scalper, a day trader, a swing trader or a position trader. All these types of traders have their own battles of patience that they have to fight. The simple rule is, “Do not mess with your trades until you have a very strong reason (outside your emotions) that your earlier trade reasons has changed.”
If you are a trader and you love to watch your charts, then all the best and goodluck. But constant and continuous unproductive staring of your screens (especially when in a trade) causes you to mess up with your trades. Simply put, “Do not stare at your screen when you have nothing important (analysing charts or managing trades) doing”.
Traders are usually impatient because; they think the price is moving away (when they realise an entry reason too late), or price wont come to their entry but will go to their target (when they realise a signal too early), when they think price will take them out of their trade and go in their direction later (they move stoploss further away), etc. In all, do not chase the markets. Let the market meet you. Remember that you cannot control the market, but you can control what the market can do to you.
Not every trade will be profitable, but the patient traders will always control what the market does to them and will eventually be rewarded.
Be patient, for that is the most profitable strategy you can ever trade on the forex market.