Why do most traders end up losing a lot in the market, the reason is simple, they do too much. They jump in at just anything they see on the chart. When you trade too much, overthink the chart, etc. Then you are bound to make costly mistakes that can ruin your entire trading account. Patience is an essential virtue of possessing as a trader without patience making money is somewhat impossible.
Why do traders do too much?
People want to make money by all means, and as fast as possible, that fact alone makes people do unimaginable things in the market and lose money. I started trading forex as a scalper, at first everything looks promising in fact I began promoting scalping as a forex strategy that can get you rich fast. I trade close to 20 times daily making little profit. Later on, I started having loses I could not control so, in a quest to get back at the market, my number of trades grew so also my risk. And that was how I blew my trading account. Impatience is an enemy to your trading, and you need to tackle t to make money trading forex.
Furthermore, people do too much in the market because they spend too much time reading charts and placing trades even if there is no opportunity. The more you spend time analyzing the market, the more you will be tempted to enter a trade. Spending too much time reading charts is one primary cause of trading mistakes.
Why you need to do nothing 99% of the time.
I happen to trade at one time on etoro where I was privileged to copy a very successful trader though not popular. I learned a lot from him, even though I trade for myself now. This guy trades only 4 to 6 times monthly I asked him why and this was his response “patience is a virtue I wait until my conditions are fulfilled before I place trades” his response entirely changed my mentality.
Nial Fuller is a mentor and a teacher, I have benefited a lot from him. In fact, most of my success trading forex can be attributed to him. Best teacher on price action trading strategy.
The most profitable traders spend most of their time doing nothing, they place fewer trades but make money in the market. If you can follow the patience rule, then your success is not far.
In forex trading, we take advantage of opportunities to make money. Trade like a sniper, only shoot when your setups are present. Shooting haphazardly can get you in trouble. Once your setup is not present, then there is no opportunity.
What should I do then?
- have a strategy at hand example price action etc.
- ensure you grasp all you need to know on your chosen strategy
- Place trades only when your setup is present based on your strategy
- spend less time analyzing and brainstorming your charts
- don’t risk too much of your capital.
Patience takes time to become part of you. Practice it one day at a time.
Do you have any question or contributions, let’s know about it in the comment section. Remember to share.