The Two Traits You Need To Succeed
Patience and Discipline are two essential inner traits for traders to have. The longer you’re able to focus intently on something, the easier it is to do it in the future. The same is true with patience and discipline – the more you focus on being patient and having discipline, the better you’ll become at it.
Let me give you an example. Let’s say that every time I see a beautiful woman, I go after her that same moment. I see one, and I run after her. The next woman I see, I chase after her as well. This kind of behavior will not make me a healthy romantic choice for any of these women.
Yet we do the same thing with the stock market…we see a stock that looks enticing to us, it’s running upward and we immediately feel like we have to invest in it. Then another stock makes a big run and we immediately run to that stock to invest in it as quickly as we can.
It comes down to a lack of patience and discipline – we aren't willing to wait for the right one. Patience, my friends! Sit down – take a deep breath – and let things set up and come to you. You won’t get everything you want from the first time you meet that special someone. And you won’t get everything you want from that first moment you enter a trade either.
It takes time for things to build up in the stock market – which is why patience is so crucial. This is just like in a romantic relationship -- the longer you spend building it up and nurturing it, the better it will be for you.
Be patient and allow the charts to set up. Even if it looks like it is breaking lower, you may want to wait a second day for confirmation. If it looks like it is breaking higher, you may want to wait a little while to see if there is a pullback before entering the stock.
Patience and discipline will help prevent you from allowing your small losses to snowball into bigger losses as you frantically chase after ways to recoup your small losses. In all your trades, do everything with patience and discipline.