Giles Coghlan LLB, Lth, MA
HYCM
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 stabilizes above 1.0750, looks to post modest weekly gains
Following the sharp decline witnessed in the European session, EUR/USD has managed to recover modestly and seems to have stabilized above 1.0750 amid an improvement seen in market mood. The pair remains on track to end the week modestly higher.
GBP/USD holds above 1.2200 heading into the weekend
GBP/USD retraced a small part of its daily decline in the American session after having tested 1.2200 earlier in the day. The US Dollar has lost some strength with Wall Street's main indexes rebounding from opening lows, allowing the pair to limit its losses.
USD/JPY Price Analysis: Bounces off multi-week low, remains vulnerable below 61.8% Fibo
The USD/JPY pair remains under heavy selling pressure for the third successive day and touches its lowest level since February 03, around the 129.65 region on Friday.
Editors’ Picks
EUR/USD stabilizes above 1.0750, looks to post modest weekly gains
Following the sharp decline witnessed in the European session, EUR/USD has managed to recover modestly and seems to have stabilized above 1.0750 amid an improvement seen in market mood. The pair remains on track to end the week modestly higher.
GBP/USD holds above 1.2200 heading into the weekend
GBP/USD retraced a small part of its daily decline in the American session after having tested 1.2200 earlier in the day. The US Dollar has lost some strength with Wall Street's main indexes rebounding from opening lows, allowing the pair to limit its losses.
Gold retreats after facing resistance at $2,000
Gold price climbed above $2,000 in the early American session but reversed its direction. With the benchmark 10-year US Treasury bond yield recovering from daily lows after Wall Street's opening bell, XAU/USD struggles to keep its footing and trades at around $1,990.
Breaking: Binance suspends spot trading, citing issues
Binance, one of the world's largest cryptocurrency exchanges by trading volume, announced that it halted spot trading. The announcement from the exchange caused BTC and ETH to drop by nearly 3% and 4%.
Deutsche Bank Stock Forecast: DB shares drop 6% at open following bond sell-off
Deutsche Bank (DB) is the newest bank that has the market worried. Shares opened down more than 6% on Friday and at the time of writing are trading off -6.8% at $8.99.
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