The Key Essentials to a Trader's Psyche #3:Having Patience

by Markus Heitkoetter

In order to develop the right mindset, to have a trader's psyche, you need to know what to expect when day trading. You must be prepared for a variety of emotions so that you can monitor them instead of letting them control you. Only by staying on top of your emotions can you stay focused on the key to successful day trading: maintaining a consistently profitable long-term strategy in the middle of many smaller short-term wins and losses, even when these short-term outcomes seem overly distracting. To keep that focus, develop the traits of a trader's psyche in yourself.

Successful traders have patience. They know that most positions will not be profitable the minute they are opened. It takes time for a market to increase, or to move at all. You should never expect a position to jump right before your eyes.

Besides, remember that focusing on a particular trade is not your main goal. If you are serious about establishing a long-term strategy for consistent success, any one trade is only a small part of an overall plan. Itâ€™s the plan that you want to be successful. Of course it's nice when each trade goes well, but if it's not because of your system, you havenâ€™t learned anything you can repeat in the future.

Also keep in mind that successful traders do not overtrade. They realize that doing so puts their account at risk, and they know that not every day is a day for trading. They wait for high probability opportunities. Expecting too much out of any one trade, or even out of any one day, can cause you to overtrade. You may find yourself wanting to see immediate success, and when you take more trades, it at least makes you feel more active. But if you aren't acting according to the strategies you devised for yourself in your planning sessions, you are destroying all the work you've done. Even if the extra trades are profitable, you haven't really learned anything that can contribute to a consistently successful trading career. You've only gotten lucky.

Wait for situations that meet your criteria. See yourself as carrying out a program, not as grabbing for any little profit the moment you can. Remember that no one trade is as important as establishing a trend of success across your entire portfolio. And creating that trend will take time and patience.

If you can integrate these insights into your own psychological mindset, you'll gain a significant edge in the market. I can't stress this enough: the right mindset is one of the keys to investment success, and most traders fail to understand this.

About the Author

Markus Heitkoetter is the author of the international bestseller "The Complete Guide To Day Trading" and a professional day trading coach. For more free information on day trading visit his website http://www.rockwelltrading.com

Disclaimer: Foreign Currency trading and trading on margin carries a high level of risk and can result in loss of part or all of your investment. Due to the level of risk and market volatility, Foreign Currency trading may not be suitable for all investors and you should not invest money you cannot afford to lose. Before deciding to invest in the foreign currency exchange market you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign currency exchange trading. All opinions expressed are for informational and analysis purposes only and do not constitute investment advice.