Trading 101: Patience
(Edited)
In a world based upon instant gratification, patience is not something we excel at. However, it is vital for success in the markets.
In this video I discuss the idea of not chasing trades and how patience is rewarded.
▶️ 3Speak
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After buying when you see the price going up, you feel great. However, you do not know how far it goes. You decide that the price would be up to that level. When it reaches that level, you sell. Here I have a question.
How do you make the decision what would be the right time to sell and get out? Sometimes you see the price is still going up after selling.
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Summary:
The video discusses the importance of patience in trading, emphasizing the need to wait for trades to come to you rather than chasing after them. Task highlights the difference between trading and investing, emphasizing that trading is more short-term while investing is long-term. He shares a personal example of a successful trade in Bitcoin, where he made a profit by being patient and following specific parameters to exit the trade at the right time. Task stresses the significance of being patient, avoiding greed and fear in trading decisions, and allowing trades to come to you based on established criteria.
Detailed Article:
In this video, the speaker, Task, discusses the crucial role of patience in trading and the negative impact of impulsive decisions. He emphasizes the need to wait for trades to come to you rather than chasing them, which often leads to losses. Task points out that trading is primarily chart-driven, although fundamentals are still important, especially in shorter-term trading compared to long-term investing. He distinguishes between investing in companies for the long term based on fundamentals versus short-term trading for quick gains.
Task provides a personal example of a successful trade in Bitcoin, where he made a profit by following specific parameters and exiting the trade at the right time. He mentions the importance of knowing when to take profits and lock in gains, even if the potential for further increases exists. By emphasizing the significance of being patient and not giving in to greed or fear, Task underlines the need for traders to have clear reasons for entering and exiting trades, like observing resistance lines on charts as valid reasons for making trading decisions.
Furthermore, Task highlights the idea of not needing to be in every trade and not feeling pressured to extract maximum gains from each trade. He compares trading to waiting at a bus or train station, where if one trade is missed, another opportunity will eventually present itself. By adhering to established parameters and remaining patient, traders can make informed decisions and avoid impulsive actions driven by emotions like greed or fear.
In conclusion, Task's video serves as a valuable reminder to traders about the importance of patience, discipline, and strategic decision-making in the trading world. By sharing insights, personal experiences, and practical advice, he guides viewers on how to navigate the complexities of trading while maintaining a patient and rational approach to maximize success in the market.