Patience in trading is the ability to wait to take action until it's the right time. Ego, impulses, boredom, and greed, can overcome a traders resolve and cause them to take action too soon or too much.

Patience is the ability to follow a trading plan in real time with discipline and focus. Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.

Patience and discipline are both virtues that will benefit all traders, keeping emotion and snap judgments in check. Due diligence and quality research should inform your decisions about when to get in and out of trades, and allowing the price to catch up with the fundamentals can take some time.



IMPATIENT TRADERS

Most traders don't lose because they're bad at analysis. They lose because they can't wait and make emotional choices. Here's what usually happens: You feel like you need to trade, so you take positions that don't fit your strategy.

It's like going shopping when you're hungry - you make bad choices. One bad trade leads to another as you try to fix your mistakes.


BETTER HABITS

TRACKING YOUR PROGRESS

TRADING ACTIVITY AND RESULTS

TIME MANAGEMENT

STRATEGY MATCHES

MAKING IT WORK

KEY TAKEAWAYS