The Importance Of Having Patience In Day Trading
The key reason that not everyone is suited for day trading is that personality is a crucial determining factor of success or failure. Personality separates those who take properly calculated risks from those too afraid of losing to take any risks at all. This is what determines whether or not a person has future in day trading.
The ability to wait and not attempt to make up for bad trades, to pull out of an investment in time, and to determine what will make a good investment and what will not - all are qualities that a good trader must possess. It may sound like a cliché, but patience truly is a virtue.
Anyone who does not know much about the business will typically imagine a day trader as being someone wearing a brightly colored shirt and waving his hands about while shouting about his losses or winnings. Perhaps this was the case in the past. Today, however, day traders are people who sit, staring intently at their computer screens, waiting for any changes in the market that they may be able to take advantage of to earn a profit, or simply observing the current behaviors and trends of the market.
Good day traders possess patience, and many of them learnt this lesson the hard way - through losing money. A successful trader must not give up at the first setback they experience, neither can they afford to be overly joyful about a particular success. Traders must be able to control their emotions, or they will find themselves making ill-reasoned decisions simply because they were feeling happy or sad, and will almost definitely lose money. Having patience allows a trader to make proper trading decisions without being overly greedy or fearful when doing so.
This does not mean that traders should simply sit idle, however, as a trader is simply unable to afford wasting any time. Traders have to be constantly on the alert for any changes in the market that may affect them, and they must be focused. Only in this way will traders be able to avoid detrimental movements of the market while taking advantage of the beneficial movements. Also, any money that sits idle is money that could be earning a profit, and traders should employ all of their resources in order to maximize their profits.
At the end of the day, a trader without sufficient patience will find him or herself trading simply for the sake of trading and either making relatively little profits or even losses. A trader who understands how to be patient, on the other hand, will be able to make trades that are advantageous, and thus earn a significant profit through trading.