Patience is something you have to get used to as a trader. You’re never going to get to a point in your career where you just don’t need to be patient anymore. That’s why we dedicated this episode of Mind over Markets to helping traders cultivate PAYtience. Yes, we’re spelling it that way because having patience in trading means earning capital, and cultivating patience means you’re setting yourself up for long-term success.
Developing a strategic plan is the only way you’re ever going to cultivate patience. Get over that instant gratification that defines our generation RIGHT NOW. We’re sharing tips and tricks for how you can stop looking for that instant win or fast-lane to success and start training yourself to look for the market signs and signals that will point you to the good trades.
It’s going to take a bit of practice. Successful trading is the opposite of what you see on social media. In fact, it’s really boring. Cultivating patience will help you make it through the boredom. When you learn to be patient during the learning curve, you’ll be more likely to keep your cool on the trade floor, during risk management, and throughout the long-term as you work your way through your career milestones. Because becoming a successful trader is going to take much longer than you think, and cultivating patience now will make you that much more successful further on down the road.
Cultivating patience as a trader is actually a very strategic move. Being patient means you’re always waiting for something. When you’re patient, you’re prime and ready for when the right trade hits. Having patience will help you manage your emotions, help you stay focused, and ultimately help you make better trade decisions. We go into how cultivating patience leads to better decision making, and George even shares his top tip for cultivating patience and living in the moment.
In this episode of Mind Over Markets, we’re also looking at Inc.com’s Top 7 Facts about Patience:
- Being patient means you’re less likely to make reckless risky decisions
- Your co-workers, your friends, your family all want you to be more patient
- Having more patience means you procrastinate less
- Patience will calm your mind and help you cope with stress
- Having patience will inspire more gratitude in your daily life
- Patience can improve your health by reducing headaches and ulcers
- Reframing the way you think about emotional situations can help you cultivate more patience
We dive deep into these facts and share our personal experiences with how and when patience has helped us. When we use patience, each and every one of our trading outcomes improves, which says a lot about our mental capital while we’re cultivating patience. Unfortunately, you aren’t going to patient all of the time. We explore the most common reasons why traders lose patience and the steps you can take to cultivate and manage your patience on the trade floor.
If you’re curious about the ways you can start cultivating patience as a trader, take a sneak peek of some of the steps we talk about on this episode:
- Know the value of patience in your personal trading strategy
- Set a maximum daily trade limit and a daily mental limit
- Build safeguards to stop you from losing your patience
These are just a few of the tactics you can use to keep your patience in check while you wait to make the right trades at the right time. We go into these strategies and many more to help traders at all points in their career cultivate the patience they need to be truly successful instead of just chasing the markets.
In This Episode You Will Learn
- The reason why we have no patience these days 2:10
- Why successful trading is actually really, really boring 5:40
- Our favorite quotes about patience 19:51
- Top 7 facts about patience 26:36
- How these patience top facts parallel one of our listener’s experiences 40:12
- Steps to cultivating and managing your patience as a trader 59:00
- TRADER CHALLENGE: How to create a daily trade limit that works 63:18
Some Questions We Discuss
- What is the most important aspect of cultivating patience? 1:08
- How do we define patience? 12:30
- What are the different levels of patience you need to overcome to be a successful trader? 10:04
- How will patience help you make better trading decisions? 16:00
- Why do traders lose their patience and their capital at the same time? 46:12
- Where does the idea of a “fixed income” come from? 56:16
- What’s a “hall of fame trade”? 73:10
Resources
Mind Over Markets