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.
High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure. *Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party, or otherwise. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.
Editors’ Picks
EUR/USD drops to near 1.0950 ahead of EU/ US inflation data

EUR/USD is dropping to near the 1.0950 region, under fresh selling pressure amid an uptick in the US Dollar on Thursday. Softer-than-expected French, German and Spanish inflation data weigh on the Euro. All eyes are on the Eurozone and US inflation data for fresh impetus.
GBP/USD hovers around 1.2700, US PCE data looms

GBP/USD is fluctuating around 1.2700 in European trading hours on Thursday. The US Dollar recovery is maintaining the downward pressure on the pair, as markets trade with caution ahead of the US PCE inflation data, BoE- and Fed-speak.
Gold price remains supported by dovish Fed expectations; eyes US PCE for fresh impetus

Gold price (XAU/USD) extends its sideways price move heading into the European session on Thursday and remains confined in a narrow trading band below its highest level since May 5 touched the previous day.
Bitcoin Spot ETF anticipation fuels BTC price rally in spot and futures markets

Bitcoin Spot ETFs could see a batch approval in January. Eric Balchunas, a Bloomberg ETF analyst shared details of an updated application by asset manager BlackRock.
Inflation misses embolden dovish bets

A wave of inflation misses around the globe has helped to embolden doves, with the market continuing to price in peak rates and a move from central banks towards more investor friendly monetary policy into 2024.
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