I wrote an article a few weeks back outlining common mistakes new traders tend to make. If you missed it, find it here.
It is not uncommon for me to, at times, go back and review the articles I have written. In doing so with the article mentioned above, I realized I left out one of the most crucial pieces of being a successful trader.
I have written about it previously but always feel the need to revert back to the topic. The missing piece I am talking about is:
Yup, that’s it. Patience. The ability to remain patient as your trade unfolds. The ability to remain patient as you await your ideal entry. Most traders would do better if they can somehow insert ‘patience’ in their trading plan.
I am aware the concept of patience isn’t sexy. It can be seen as counter-intuitive and perhaps at first glance, irrelevant to trading. But as a stock speculator for over a decade, I will tell you, without it, you will join the 95% of traders who are unsuccessful.
Warren Buffett said, “the stock market is a device from transferring money from the impatient to the patient”.
When I started out many years ago, this statement didn’t resonate with me and I thought the old man was very dated in his teachings and perhaps even senile.
However, after trading for many many years, I’ve realized Warren Buffett is actually right!
Why did I doubt him? He’s a Billionaire! You shouldn’t doubt him, he’s a Billionaire.
To be successful in the stock market, you must learn patience.
Show me an impatient trader and I will tell you, that trader isn’t living up to his/her trading potential. Patience is a must if you want to succeed in this game.
It isn’t easy, but it’s one of those things you can learn; and we can teach you. It’s at the forefront of our trading at ShortMeTina.
Patience may mean going a few hours or days without entering a trade. Being patient may mean, on average, only taking a handful of trades per month. Being patient may mean, removing yourself from the computer every day or several times throughout the day. Being patient may mean, analyzing a stock for a lengthy period of time to then come to the conclusion that you will pass on the play.
Being patient may mean…
…Okay, I think you’ve got the message, you must be patient.
And feel totally free to try the above suggestions.
If you’re in this game to join the ranks of the small percentage of traders that consistently take home heaps of money, then learn patience.
Trust me, I’ve been trading for over a decade or at least trust Warren Buffett, he’s a Billionaire.
Good, Bad or Ugly, what do you think? Leave a comment below or on any social media site of your choice. @ me on Twitter, follow me on Instagram and Facebook and show me some love.