Lol, good point. I totally agree that patience is important in trading, but patience is not the only important thing one needs in trading. Knowledge comes first, of course, after the capital, and then comes patience. You use your knowledge to make good trades, and then stay calm and collected when the market tests your patience because remember, as a trader, you must understand that the market is always going to test your patience, it's not like you make your trade, and you start getting profits immediately. That happens sometimes, but not always.
If someone is impatient, even if the odds are mostly in their favour and the market is going to reverse, they might close the trade at a loss out of fear when they see the market going in the opposite direction, and that's where patience comes in. If you stay patient and don't close it too quickly, it might start reversing, and your loss will slowly turn into profit. By the way, one shouldn't avoid using stop-loss in any case, whether they are patient or not, it's important.
So, at what point should an individual say "trading is not for me". Is he just being impatient? What if he is just being honest with himself which may turn out to be the best decision taken? I just want to see a post or article that addresses this and let's traders know when they have hit their limits. Patience is really good, but it can also be abused. Maybe, just maybe adequate knowledge should be able to address this and put the trader on track.
I think one of the most important aspects in trading is for you to know yourself, your capabilities and your constraints. Being able to identify your true capabilities in trading will go a long way in determining when you should set limites to yourself. Though thy said, patience is a virtue in life and in trading but it can also become.a trap once you don't know how to set limites for yourself. I think its not a weakness if you understand that trading is not for u especially when you always break the rules u set for your self. I could also mean u are not just ready to be an active trader yet hence u should take a breath. It may not necessarily mean you're impatient but it could also be your nature which is something you probably needs to nurture or train yourself against.
Trading is a highly risky and highly emotional activity which requires psychological discipline, learning and understanding. Trading also requires you to be patient with time. It is also good to know trading is not for everyone and a good trader knows when to enter a trade and when to quit as knowing exactly when to quit is a wisdom on its own. Having an adequate knowledge is a first step to identifying when you should stop or take a break.
Good point, and same with your example most of those who lose their money are those who did not take the opportunity to stop when they have that chance to earn, but instead they did aim to win more and regret after, there are situation that patience might be use especially if you trust your knowledge and understanding.
Like what you said, proper knowledge and established your skills and understanding might allow you to prevent losing your investment.
It's a trap bro. Thinking there's 'just one more trade left' is what makes many traders to lose their capital and potential profits to trade. In this regard, it can be referred to as greed because many traders have mistaken greed for patience.
Instead of securing the profits they already have, some traders keep aiming for bigger wins and end up holding losing trades for too long and hope to recover in 'just one more trade'. Gaining a proper knowledge and understanding in trading gives a trader the leverage to detect when you are making a decision based on emotions or based on the strategy to win.
I started trading in 2020. I won't talk much about my mistakes because I've said them many times but since here is the focus about importance of patience in trading, I can tell a little funny fact. When I was taking sedatives, I had the best trading sessions. In my newbie days I was trading 10 times a day but on sedatives I was trading 2 times a day and I was choosing the best moments. 1-2 years later I already learnt a lot from my mistakes and today I am very patience without any sedatives. I buy and sell a few times a year, sometimes I might not even buy or sell, everything depends on my confidence and market's situation. I have never been so happier and profitable before.
Your experience is a great example that the best of traders are not really those who trade all the time but those who trade with discipline and based on their calculations. Over trading is one factor which can lead to poor decision making and over exposure to failures.
I do advice plenty new traders to always take things easy because many have mistaken over trading for productivity which is not always the case. For an individual to be more productive, requires a trader to be more intentional about their trading decisions which should generally take more time. I've come to realize that trading aggressively or.brutally can never become the determinating factor to a successful trading career.
,The reason why majority traders lose money is because they buy in morning and want to price to go up in next few hours, if that didn't happen they sell their tokens in loss.
Having patience when trading doesn't mean you won't sell but keep on holding and waiting for the project to turn from being a loss to profits sometimes you won't get that happy ending that you're looking for. You aren't an investor that's supposed to hodl until the fate of the market changes. Trading is for short term and not long term hence while you still need to have patience with everything you do, know when to stop wasting your time waiting for something that won't change. Some projects has fallen because of some negatives news and haven't recovered since they started to decline in price. Be a smart trader and know when you're supposed to be holding or when you're meant to b smart about your decision and sell.
In the end, trading not only requires patience but we also have to be smart in analyzing or researching the coins we want to trade and of course finding the right moment to take a position. Because if you only rely on patience, there are coins that after going down never go up again so relying on patience will be in vain in this case as you said.
I have a friend that lost over 500$ at a go to a futures trade in the name that he wanted to take advantage of a falling coin. He took a position when the coin was in deep and gradually retracing. He said he was very confident nothing will stop the coin from rising to his targeted profit margin hence going into the trade without any calculated risk management. He did not apply Stop Loss to the futures trading with the trust that it won't fall deeply any longer. In the end, he was disappointed as he lost all his capital worth over 500 dollars to the trade in a situation where the capital was all he had at a time. He's used this incident as a lesson whenever we discuss trading with just patience or emotion vs trading with knowledge and understanding. Some act of patience can end up being an act of greed and failure if not backed by knowledge and understanding.
In trading, not only patience is needed to make a profit, indeed patience is important in trading, but in trading also requires strong knowledge especially in terms of market analysis, good risk management, and our ability to make the right decisions. So to be a good trader, we must be able to combine all of that. Unless you invest in bitcoin for the long term, all we need is patience to make a profit.
The number one driver of good trading is knowledge and experience. In fact, this is what leads.to patience in trading and when to quit a trade. When it comes to long term investors like those who invest in a coin for a very long time because of the potentials it carry can actually rely more on being patient than traders. As for traders, patience actually means taking your time to learn the right trade to enter at the right time and exercising the discipline of quiting a trade when it's the best time to leave. However, the combination of.both patience and knowledge which includes market analysis, good risk management and the ability to make the right decisions like you mentioned is the basis of an individual's success when trading.