What is Patience in Trading?
Quick Answer: Patience is the discipline to wait for quality setups and manage trades without emotional exits, protecting expectancy and mental capital.
Understanding Patience in Trading
Patience is the discipline to wait for high-quality setups, manage trades without emotional exits, and allow compounding to work. It is a psychological edge, not just a character trait.
Applying Patience
Define clear criteria for entry, confirmation, and invalidation. Use alerts rather than staring at charts to reduce impulsive trades. Patience also means sitting in profitable trades while they reach logical targets.
Build Rituals
Start sessions with a checklist. If conditions don’t align, step away. Practice meditation or breathing drills to reduce urge-driven decisions.
Metrics to Monitor
Track percentage of trades taken outside your plan, and note opportunity cost of boredom trades. Patience improves expectancy by filtering noise and preserving mental capital.
Patience vs. Paralysis
Overanalysis can morph into inaction. Balance patience with decisive execution when setups align.
Related Terms
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