There is no way to force the market to do what you want it to do.
Even large hedge funds or banks can only exert their control over the price for a short period of time. In 2015, we saw that the Swiss National Bank, who in theory have unlimited resources (because they can print money), were unable to keep EURCHF above 1.20.
For the retail trader, we certainly cannot move the market. Even as a group, our accounts are tiny compared to the several trillion in FX transactions executed every day.
Given that we can’t make the market do what we want, we have but one option. That is to wait for it to do what we want.
That is why patience is a key trait you must develop if you want to be successful. Without it, the trader will prematurely enter trades in conditions that don’t suit their strategy.
The Retail Traders’ Edge
Patience is one of the retail traders’ great natural advantages. The Swiss National bank was forced into action by macro forces. In their minds, they had no choice but to buy EURCHF. Dealers in the interbank market must take positions. This is their key function as market makers. Hedge funds have investor returns to worry about. Will a client keep their money with the fund if they are not making use of it?
The retail trader does not have this concern. They can wait for conditions to line up before they trade.
You Have More Time Than You Think
Many Forex traders are here for fast profits. Perhaps the leverage available encourages this type of thinking. But trading is not about fast profits. It is about achieving long-term trading goals.
When considering this, it helps to maintain perspective. If you so desire, you can be trading for the next thirty or fifty years or more.
In this context, waiting that extra day, week, or even month until your next high-quality trade comes along does not seem like such a big deal.
So, be patient. You can’t force it. Wait and be ready to trade with courage when the time comes and not before.
About the Author
Sam Eder is a currency trader and author of The Consistent Trader and the Advanced Forex Course for Smart Traders (get free access). He is the owner of www.fxrenew.com a provider of Forex signals from ex-bank and industry traders (get a free trial). If you like Sam’s writing you can subscribe to his newsletter or get FREE access to his acclaimed How to Be a More Consistent Trader Short Course.
The post Why You Must Cultivate the Trait of “Patience” appeared first on FX Renew.