I’ve observed the movements and ways of life of wildlife at different game reserves, resorts and zoos. Penwarm, Kruger National Park, Londolozi and Sabi Sand Game Reserve to name a few.
And I’ve seen how leopards work when they catch their prey.
This methodology is very similar to how we as trader should act in the financial markets.
They lurk behind the bushes in a crouch position. They can wait all day for just the right moment to pounce on its prey and bring the hunt back to its family. Even though they know they can outrun their prey, they still wait for the perfect moment to pounce.
Either they’ll wait for the animal in a vulnerable position, injured or the perfect time where they will have a higher probability of catching it..
Patience my friend.
That’s the most important element to grow your portfolio.
You don’t make money taking a trade. You make profits while holding, waiting and letting the market play out.
Here are five reasons why Patience is key for your trading success.
#1: Stops you from making impulsive decisions
Once you’re in your trade, holding and leaving it alone can help you avoid making impulsive decisions that are based on emotions rather than careful analysis.
#2: Helps you spot high probability trades
You need to have the patience to wait for the right opportunities to arise, rather than jumping into a trade just because you’re feeling anxious.
#3: Hold onto winners Trading is NOT about banking small profits.
Because you do that and your losses will outweigh your winners.
Your Risk to Reward should ALWAYS be above 1.5 at the minimum.
This way you’ll hold onto your positions for longer periods of time, which can increase the potential for profits.
#4: Takes away fixation When you enter into a trade, you may feel the instinct to watch it and observe ALL day.
This will spark up your cortisol levels and will distract you from your higher priorities you have in a day. Once you’ve taken the trade, leave it alone to do its thing. You have your winning trading strategy in place.
#5: Wait for the prey Like a leopard, successful traders need to be patient and wait for the right opportunities to arise, rather than acting impulsively or making rash decisions.
This is why having a clear and proven plan can also teach us the importance of running it which is essential for success in the financial markets…
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