Research suggests that the best way to become a long-term, successful trader is to trade with patience. This article provides tips on how to trade patiently.
Many online traders approach the market with the intention of making a quick return on investment within a short period of time. Instead of planning their trades carefully and establishing a forex trading plan, they rush to make a huge return on investment, becoming greedy in the process.
Research clearly demonstrates that slow and consistent gains are the best way to achieve long-term market success. And most traders will agree that they would prefer to make small profits over a long period of time than massive profits within a concentrated timeframe.
Listed below are some top tips on how to trade forex with patience:
Always put Quality over Quantity
The most successful traders wait for days or even weeks without trading before executing a trade. Rather than trading continuously in an effort to make a return, wait for the perfect moment when you are 100% confident that this trade will be a successful one.
Such trades must be executed with a complete lack of emotion. You need to be objectively ready to place the trade and not waver in your decision. You also need to be fully prepared to lose the money you have risked on this trade if it doesn’t go to plan.
Trade with caution and never, ever rush a trade. To encourage this approach, learn currency trading on the daily chart time frames before using lower time frames. Use daily charts to access relevant market information that is also practical. Remember, making a return on investment does not need you have to trade every day.
Develop a Positive Trading Mindset
Patient traders learn to trade forex using positive FX trading habits, whilst emotional traders develop negative habits when trading forex. Having full control over your emotions simply means that you need to trade less to be profitable.
Over time your patience as a trader will pay off and you will be less inclined to execute unnecessary trades. As a result, you will spend less time on the trading platform overall. You will also be calmer and less stressed in your day to day life, instead of epitomizing the typically stressed-out, exhausted investor who spends hours staring at the trading platform in the hope of executing a positive trade.