Giles Coghlan LLB, Lth, MA
Financial Source
One of the attributes that can be most highly rewarded is that of patience. The ability to not act when others do. Looking over last year’s trading results, there were only 3 or 4 leveraged trades that really made the year. Many more trades were unleveraged and resulted in a little gain here and a little loss there. Many discretionary traders note a similar phenomenon. A few very successful trades would make the trading year.
And yet, despite knowing this, the lure of the markets means it is very hard for traders to actually stay out of the market. Trading is enjoyable for its own sake. Trading is also addictive and can result in compulsive behavior. Therefore, one attribute that will really benefit you is this: stay patient. So, on that note, here are some tips on how to stay patient.
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Use a checklist. The power of a checklist in trading can help you avoid mistakes and potentially slow down an impulsive entry.
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Have your trading terminal closed? You analyze the charts on a different platform than the one you trade on. This can provide a precious block stopping you from entering impulsively.
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De-leverage. Surprisingly, risking too much will cause you to enter and exit prematurely. If you have a hard time accepting your money at risk then this will make it hard to leave positions run. You will enter and exit too frequently.
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Use a checklist when you have an open trade. It is easy to lose conviction on a trade over time. So, you entered a market last week, but now you don’t have that conviction. By going back through your checklist you can re-evaluate an open trade to see if you still have a high conviction. Making it more ‘scientific’ in your thinking will help you know whether to hold the position.
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Editors’ Picks
EUR/USD drops to daily lows near 1.1630
EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.
GBP/USD trims gains, recedes toward 1.3320
GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.
Japanese Yen refreshes three-week high vs USD; seems poised to appreciate further
The Japanese Yen retains bullish bias as BoJ rate hike bets offset dismal Household Spending data. Dovish Fed expectations fail to assist the USD in attracting buyers and keep a lid on the USD/JPY pair. Traders keenly await the US PCE Price Index for Fed rate-cut cues and a fresh directional impetus.
Editors’ Picks
EUR/USD drops to daily lows near 1.1630
EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.
GBP/USD trims gains, recedes toward 1.3320
GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.
Gold makes a U-turn, back to $4,200
Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.
Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut
Bitcoin is steadying above $91,000 at the time of writing on Friday. Ethereum remains above $3,100, reflecting positive sentiment ahead of the Federal Reserve's (Fed) monetary policy meeting on December 10.
Week ahead – Rate cut or market shock? The Fed decides
Fed rate cut widely expected; dot plot and overall meeting rhetoric also matter. Risk appetite is supported by Fed rate cut expectations; cryptos show signs of life. RBA, BoC and SNB also meet; chances of surprises are relatively low.
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