Patience. Everyone tells you to be patient.
But what does that mean?
“Wait for good setups. Hold your winners.” Very generic wisdom you can find in thousands of trading books.
First things first, let’s discuss why patience is NOT important. And how to think instead.
Without knowing you, I’m willing to bet you would earn a consistent living if I gave you good trades. As a matter of fact I have no doubt. I’ve helped thousands of students do it.
OK. So why aren’t you doing it? Why is trading a challenge?
Because it’s not the “good” trades holding you back. It’s the unplanned trades without an edge that ruin your P&L.
And this is where the “you need patience” myth comes into play. You don’t need patience, you need good ideas. You don’t need super-discipline because that implies struggle.
There’s no struggle when you realize WHY you don’t get paid. You simply let bad trades go. It’s not tough. It’s the right way to trade.
So what does that look like?
The chart above shows a 5 minute chart, but it applies on any time frame…it could be a weekly chart.
Assuming order flow is obvious, you only look for entries when the last price is trading above the open price. It could be the open for the day, the week, or the month, depends if you’re a day trader or swing trader.
But that magic line is when you look for an entry. If it’s below (for a long) you sit back and sip coffee. If it’s above, you buy with conviction.
Is trading really that easy?
There’s more to knowing when order flow is obvious, but this is a solid way to stay out of trouble.
Speak to you soon.
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