There is a Chinese proverb that says, “One moment of patience can ward off great disaster. One moment of impatience can destroy a whole life.” It’s a proverb worth remembering when thinking about Forex strategies, because when it comes to trading Forex, patience really is a virtue, while impatience can be disastrous.
Patience and discipline may well be the two most crucial keys to successful trading and the two habits are inextricably entwined. Not only do you need to have the discipline to structure and follow a trading plan, but you also need the patience to learn and practice Forex trading so that you can then apply that same patience to wait for the right set of trading conditions that suits your trading plan. It’s easier said than done, but learning patience is bound to save you much heartache and money. Practicing patience and applying it within your trading strategy can even help you to maximise trading profits.
Here are three key areas where patience is vital in Forex
- You have to spend time learning the ropes. Learning the intricacies of using all of the tools at your disposal, while formulating strategies takes time. It is time well spent. Not only does USG provide you with a myriad of training tools ranging from daily updates through to one on one coaching sessions, it also allows you to practice trading. These practice sessions can help you to apply your knowledge in real time without risking your hard-earned money. The more you practice, the more you learn and you will be able to test your knowledge (and trading patience) in a safe situation. The temptation with Forex is to jump in and start trading before you have the skills, strategies and knowledge to trade with confidence. Put the time and energy into not only learning the mechanics of trading but the idiosyncrasies of specific trading pairs and you will reap the rewards. Sitting on the sidelines while trading is occurring can be very frustrating, particularly for the new Forex trader, but forewarned is forearmed. Be patient and learn Forex first.
- Once you start trading, you need to have the patience to wait for the specific set of trading conditions that your trading plan has identified. Sitting on your hands can be frustrating, but also rewarding, if you’re prepared to wait for the right set of circumstances. That doesn’t necessarily mean that every trade you make is going to be a winning one, it does mean, however, that you are less likely to make poor spur of the moment decisions that can leave you exposed to unnecessary losses.
- Perhaps one of the greatest applications of patience in Forex is being able to let the trade play out within your trading parameters. While taking a profit is always a good feeling, it may be possible to let the trade play out within your initial trading strategy by using stop losses to protect your position. Similarly, initial movements may put your trade into a loss scenario at first. Again, appropriate uses of the stop loss trading mechanism and the application of a little patience may work to your benefit. The strategies discussed in this last point do require some training and the application of specific trading strategies.
Understanding why patience is important is totally different to being able to apply it in the heat of the moment. But, as Benjamin Franklin one said, “He that can have patience can have what he will.”
That’s why practice and training is so important when learning Forex trading. There is no better way to improve your trading than to have your very own personal FX coach & mentor, and when that coach is Rob Clayton you know you are in good hands!
When you arm yourself with up to date information, education, one on one coaching by our USGFX analyst and combine that with good trading habits your chances of sustained Forex trading success will improve markedly.