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stock trading: Patience

It’s very common for newer traders to come to the profession of stock trading for a living with the money mindset that they grew up with; that of getting paid dollars per hour. The harder you work the more you should earn. Unfortunately in trading this doesn’t work.  You are being paid by the month, not by the hour. As a stock trader, your job is to manage risk and leverage through the six and a half hour trading day. Your job is to find high percentage opportunities, the higher the probability the more leverage you should allocate to the trade.

Time after time we see new traders who feel like they “have” to be in the market at all times. Well the fact of the matter is that there is NOT something to do all the time, especially this time of year (middle of summer). You must also never forget that entering the trading arena means you are opening a business for yourself. You need to learn how to run your business in order to make money. That doesn’t happen overnight.

In order to succeed as a trader you need patience in the following areas:

  • waiting for a good trade
  • holding on to a good trade
  • developing your trading skills, learning from your mistakes
  • recognizing your own trading personality, scalp, momentum or trend trader?

Can you make it as a professional trader? I say absolutely! Just give yourself a chance, be patient.

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Categories: Beginner education
  1. August 5, 2007 at 4:08 pm


    Your blog are really well organized and full of information. Thank you for sharing… (smile)

    My name is Cornel Tanady, and have been doing some research about options trading.

    Kindly visit my blog to know more about options trading and leave some comments please.

    Thank you very much.


  2. Peter Davis
    August 13, 2007 at 4:47 pm

    Hi –

    I completely agree with on the subject of being patient. It is difficult but the more success you have being patient, the easier it is to wait for your setups. Early last week I found myself getting various anxious to take some short positions in the homebuilders. But, after reviewing the charts, I finally fought the urge to chase the trade. After a few days, my patience paid off, as all of the homebuilders bounced sharply, only to fail at both key resistance and their 200 dma’s. Had I taken entry when I first had the urge, I’d probably still be down. Now, I’m in a much better position, have better risk-reward and, hopefully, bigger profits.

  3. Bryanadvisor
    September 24, 2008 at 1:18 pm

    ZIPI.Pk : The Money Flow Index (MFI) has risen steadily all week as has the On Balance Volume (OBV). The MACD analysis on the stock indicates increasing upward momentum for the stock with a very significant crossover of the zero line earlier last week

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