Saturday, 27 September 2014

Giving yourself the gift of patience...





It's been over 3 weeks since I last took a trade....and I am still relaxing. 

The last trade I took was on the 09th of September: See below



The key to long term profits is not over trading....Most people tend to think that the way to make a lot of money in the markets is to trade day in day out....24 hours a day with a gazillion strategies.

That is really not how it works. You have to be patient enough to wait for the right signals to enter/exit a trade.

Have only 1 or 2 strategies that you use and ensure that you only enter or exit positions when you have signals from these strategies.

Patience preserves your capital and ensures you do not dig yourself into a hole you cannot come out of.

So what do I do in the meantime? Focus on raising more capital and relaxing....Enjoy.


2 comments:

  1. Can you hold on to a winning position for that long without closing your trades?

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    Replies
    1. Beautiful Question.

      Yes , for each trade I am in I always have a profit target or a constant raising (for long positions) or lowering (for short positions) of my stop loss which locks in my profit as the trade pans out. That way the trade is not just open ended . I manage the position all the way till I get closed out or until my profit target is hit.

      Never take yourself out of a trade. Always let your stops or automated profit target do that for you.

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