The Ability to Wait – Is Where the Money Is Made

We talk time and time again about following a strict set of trading rules which requires having the ability to wait for price to come to you. We venture to say, there isn’t a consistently profitable trader out that there, that doesn’t have a strict set of trading rules.

If you think about it, learning the fundamentals of trading isn’t what keeps a trader from losing – technical and fundamental analysis can be learned – like anything else in life.

Supply/demand, support/resistance, price action and the plethora of indicators (which you should avoid), can all be learned; on the technical side. Fundamentally, it’s no secret recipe – a company’s financials are a company’s financials – unless they cook books, then that’s another conversation. Point is, these things can easily be learned.

A trader’s ability to remain disciplined, is ultimately what separates winning vs losing.

When we talk about being a disciplined trader, we’re talking about following the rules you have set out for yourself each and every day on each and every trade.

These rules, will undoubtedly contain waiting. Waiting for a particular set of steps to unfold, before putting on a position; remaining objective – not subjective.

How many times have you been stopped out of a position and then moved onto another trade idea only to return to your original trade to find it working exactly as planned?

For some reason, patience seems to be a difficult concept to grasp.

Perhaps it’s due to a new reality of instant gratification. We have so much information at our fingertips, the moment we desire it. The concept of having to wait for something, goes against the natural flow of our daily lives.

Even outside of trading, when we actually do exude patience in what we desire, the outcome is usually more beneficial than what we desired to begin with.

Taking this concept of patience and implementing it into your daily trading habits will pay dividends each and every day. Patience will avoid costly mistakes by not getting into positions too early; which may end in an avoidable loss.

Patience will allow you optimal time to analyze price action and plot an entry more beneficial to your setup. More importantly, patience will help to remove the emotional side of trading.

Emotional trading is subjective – objective trading is what is required.

When we react based on emotions, rather than allowing ourselves time to digest what a chart is telling us, wait for our rules to unfold and then react, we can quickly loss control of rational decisions – this is subjective trading.

Going back to getting stopped out of a position and then later seeing the stock performing exactly as expected, can easily be avoided.

All you have to do is stalk the stock and follow you trading rules – on every single trade. This will get you back into a stopped-out position, if/when your original idea unfolds once again.

When a price reaches your stop loss, exit and wait. There is no rule stating that you cannot get back into the trade at a later time.

About The Street Trading

Consistently Profitable.

That's The Goal.

Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That's The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading - It all comes down to managing risk and market psychology.

If you’re interested in learning more about what we have to offer you as a trader, come check us out at www.thestreettrading.com

We look forward to joining you on your trading journey!