Home > Lessons from the trading floor > how to be a patient trader

how to be a patient trader

Michael Jordan was very famous for “letting the game come to him.” He didn’t take a shot every time he touched the ball, he was patient to get a feel for the flow of the game.

If you ever hope to become a consistent trader it is imperative for you to be disciplined. Discipline is the secret key. The ability to follow your plan to the letter (assuming you have a plan!).

There are so many aspects to trading that discipline applies to but I would like to touch on one in particualr that is easy to fix and can help you with your very next trade.

Stop trading both sides of a stock!

Our job is to find an institutional order and climb on board for the ride. Institutions do not flip flop the side of a stock they are accumulating or dumping. Neither should you if your goal is consistency.

Find a stock that is a long only or short sale only and be patient to wait for a set up to get invloved in that direction only.

If you should happen to get stoppped out, stick with the stock and get ready to enter again.

Long or short only, easy to remember and a great visual tool.

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  1. October 15, 2009 at 7:57 am

    The long or short only has been a great help to me as a developing trader. It has become an “indicator” in that when I start thinking about switching the side of the trade I am on, I know its time to step back, sit on my hands, and reevaluate the entire situation. It sounds really easy, but this simple concept can be easily forgotten in the moment of the trade or the moment of the day. This has become my new Post-It Note on my monitor. Thanks Pete!!!

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