Patience Is Essential To Profitable Trading – January 2017 Trading Results
Total Compounded Gain Through January 2017: +340%
Mastering the discipline of patience is key to becoming a successful forex trader. In trading there is never an even distribution of losing or profitable trades. For example, a strategy with a high win/loss ratio of 80% is still capable of having 5, 6, 7 or more losing trades in a row. Because an even distribution of winning or losing trades is never certain, you must have the patience to continue waiting for the correct setup. If a trader lacks patience they will often find themselves making common mental errors such as over-trading, revenge trading, “doubling down”, or many of the other common errors often made. The month of January illustrates this principle very clearly. What can you do to start developing the trait of patience in your trading? Below is 3 points that will help any struggling trader.
1.) Have A Clear Goal In Mind: Depending on the statistic that you want to use, those that have physically written down their goals are at least 5 times more likely to achieve them. Additionally, it has been proven that in addition to writing down your goals, having specific dates for completion as well as telling others your goals will help you actually achieve them. If I were to ask the average retail trader who is still in the learning phase what their trading goals are I would get very generic answer. It has been proven time and again that specificity in goal setting is essential to actually achieving it. This point also ties into point #2.
2.) Chart Your Account Growth: Did you know that a $5,000 account compounded at 10% per month over a 5 year period of time comes out to over 1.5 million dollars? Most will look at that number and think 5 years is way to long to become a millionaire but that is seriously flawed thinking. How many people go to school for 4 years only to come out with 50-100K in debt!?!? The fact is trading success will not come overnight. This is an unfortunate fact most in the retail word fail to realize. They think there is some easy path to huge trading profits. The truth is there is only one path which comes from reasonable and consistent profit month after month. Having a long-term goal as well as month growth figures will help you put together your goals from point #1.
3.) Have A Specific Trading Strategy: If you are anything like I was when I first started trading, then you have taken your fair share of random trades that “looked good” at the time. If you do not have a clear well defined trading strategy with specific rules for entry, exit, and trade management then you will not produce consistent profits. One of most important aspects to the DTFL Bank Trading Strategy is the mechanical nature of the entry. Having an exact rule set for entry helps provide a solid structure from which you can judge each trade setup. By sticking to that rule set, you will not only develop patience but also the discipline to wait for the correct setup. If you are still looking for a trading strategy with specific rules for entry then I would recommend checking out our forex day trading course on tracking market manipulation and smart money.
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