Patience pays.<\/p>\n
When it comes to trading, that’s my motto.<\/p>\n
I’ve now coached a statistically significant sample size of over 3,000 traders. And I’ve worked with enough traders to find reliable patterns based on what gets results and what doesn’t.<\/p>\n
One of the most common reasons that traders fail has nothing to do with their ability to read the market or manage a position.<\/p>\n
Instead, the biggest downfall for many traders is their impatience. A good trader isn’t defined by their ability to spot great trades.<\/p>\n
Instead, it’s by their ability to avoid bad trades. And this is how trading and playing Texas hold ‘em poker are alike…<\/p>\n
A game of Texas hold ‘em will see a total of seven cards dealt in three stages…<\/p>\n
First, each player will get two cards, and won’t reveal them to their opponents.<\/p>\n
Next, the dealer will lay three more cards facing up. This sequence is known as the “flop” and are communal cards.<\/p>\n
After the flop comes a fourth communal card – the “turn”. Finally, there’s the fifth and final communal card – the “river”.<\/p>\n
Between each stage that the cards are handed out, a round of betting takes place.<\/p>\n
This is where players will jockey for position and try to force their opponents to fold their hand by raising the stakes.<\/p>\n
If a player bets the required amount to stay in the game, then they get to see the next community cards that the dealer will pull from the deck.<\/p>\n
But here’s how trading and poker are very similar…<\/p>\n
An elite poker player will only see roughly 15-20% of total flops.<\/p>\n
That means the best poker players (even the most aggressive ones) will fold roughly 70% of their hands before they even see any of the community cards.<\/p>\n
In other words, a good poker player spends more time on the sidelines than on any action. It’s the same for elite traders…<\/p>\n
<\/p>\n
Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n The best traders I know are sitting on the sidelines, patiently waiting for their moment to strike.<\/p>\n They know exactly what they’re looking for… and when they see it, they pounce.<\/p>\n They don’t trade out of boredom, or on a hunch. Instead, they use a combination of fundamental analysis, technical analysis, and strong risk management to inform their decisions.<\/p>\n That’s why you’ll often hear that good trading is boring trading.<\/p>\n Knowing when not <\/em>to trade is just as (if not more) important than knowing when to trade. Remember, a trader’s primary responsibility is to preserve their capital.<\/p>\n If you’re looking for thrills, go to the casino. It’ll be a lot more fun than sitting in front of your trading screen and likely just as fruitful, too.<\/p>\n The next time you find yourself itching to get into a trade, take a step back and ask yourself if this is a trade you’ve spent time planning and waiting for.<\/p>\n If it’s a trade you want to take because you feel like you need some action… or because the market suddenly started to move and you don’t want to miss out…<\/p>\n Then you should probably fold your hand and wait for the next set of cards.<\/p>\n Happy trading,<\/p>\n Imre Gams <\/p>\nWait for the Right Moment to Strike<\/h2>\n
Analyst, Market Minute<\/em><\/p>\n