Patience is the Most Important Virtue

Many New traders experience this anxious emotional response simply because they are new. They have an "Extremely well expectation" of finacial gain which creates the desire to get started right away. The emotional desire to start placing trades is ofthern so strong that while they mentally understand that trading involves risk,they emotionally overlook and ignore th risk. This is the first mistake many new traders make!

They just want to start making money NOW

The excitement of actually placing a trade, getting into the market and jumping into the action causes many new traders to rush through trade decisions without taking the time or effort to evaluate the whole situation. They are more interested in doing something, rather than making certain that what is done is the best long term strategy.

That is called Impulse trading, CANNOT BE FORGIVING behavior.
When one rushes into a trade without doing the proper research, evaluation and trade management planning, one can easily be left with nothing but frustration.

The market was there yesterday and it will be there tomorrow, there is no absolute need to jump in today. The opportunity to make money was there yesterday and it will be there tomorrow.

The market isn't going anywhere, so the only real pressure to place a trade "NOW" is Self-imposed(自己強加的). The risks which this anxious emotional response creates are numerous . The first obvious risk is getting into a trade one should have rejected. Beyond this, the emotions effect how the trade is managed.





Lay the ground work before the first trade is ever placed.
DONT fall into the EMOTIONAL trap of evaluating a potential trade looking for reasons to enter the trade.

Better approach is to evaluate a potential trade with a clear mind and critical eye, looking for reasons NOT to make the trade.


WHAT MUST Prepare before getting into trade:

1) The MAXimum risk of the trade
2) The potential reward of the trade
3) The plan for entering the trade
4) The plan for managing the trade
5) The plan for exiting the trade