The secret to successful forex trading

This is something very real and practical … Som e th in g that, if applied, can make a positive change in both your trading results and your personal life. What am I talking about here? The ability to plan ahead and not let emotional decision-making rule your life is something that allows people to excel in their personal relationships and in their professional lives.

One of the most important and prevalent defining characteristics of people who achieve success in their lives is that they have patience. Patience is perhaps the MOST important habit that a Forex trader can develop. It is the patience to sit on your hands and wait for only the best trade setups that separates the winning traders from the losing traders.

Patience is the defining characteristic of what sets humans apart from all other species in the world. When we employ patience we are using the most advanced frontal-lobe area of our brains that is responsible for planning and forward-thinking, and when we employ emotion we are using the older and more primitive limbic system area of the brain which evolved for use in fight or flight situations.

So, which trader will you be; a patient trader who uses the more highly evolved areas of their brain, or an emotional trader who essentially trades like a monkey? Want to make money as fast as possible in the markets? But, most traders do the exact opposite of what they should do to make money in the markets.

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They do not think about 1 year from now or 2 years from now. What you need to do is think about trading as a year-long process. Think about how you can build your trading account over the course of a year, not over the course of one day or one week. You see, the market does not care about you, so you have to care about it by taking what it gives you and waiting until it shows you its cards by forming an obvious price action trading setup.

If you can do this consistently for one year I promise you that your trading account will be larger than if you trade every day and over-analyze the markets for hours all day and night. Let me explain that in simpler terms…. Do you move your stop losses and targets around multiple times after entering a trade? Do you get stopped out at breakeven all the time only to see the trade take off in your favor?

If you are doing these things you are likely trying to control the market and by doing so you are voluntarily decreasing the probability of your trading edge. This is a concept that is a little difficult to grasp because most traders feel the need to move to breakeven or manually close out a trade that is moving against them instead of letting the market run its course.

But, think about this, if you simply set and forget all your trades and let the market play out by either hitting your stop loss or your target, you are allowing your trading edge to work and after a large enough samples of trades you will see your trading edge pay off.

Most traders take smaller profits than what they had pre-determined before entering, or they make the huge mistake of moving their stop loss further from entry and taking a larger loss than they had pre-determined.

All of these mistakes are born out of a lack of patience, and until you understand that you do not need to meddle with your trades after they are live, you are going to lower the probability of your trading edge. Consider this; if you save yourself 2 losses by moving to breakeven and then you decide to move the next two trades to breakeven after getting up a small profit, but then these two trades also got stopped at breakeven when they would have been winners, you have just lowered the probability of your trading edge…even if you would have taken the 2 losses.

Now, this is a small example, but it shows you why moving your stops around and getting out at breakeven all the time or even manually closing your trades for small losses or gains BEFORE they hit your pre-determined stop loss or target can and will lower the overall probability of your trading edge and will thus cause you to have a very difficult time making money.

The underlying point here is that you need to always make sure your actions in the market are in-line with the FACT that you never know for sure what is going to happen. By pre-defining your entry and exits and letting the market then play-out you are trading in-line with the fact that you do not know what will happen.

But, when you move your stops and targets all around after the trade is live you are ignoring the fact that you do not know what will happen and you are acting as if your actions in the market will somehow cause the market to do what you want it to. If you know exactly what your trading edge looks like and how to trade it there is no reason to not be a patient trader.

In fact, by thoroughly mastering an effective trading edge like price action trading, you will find that you naturally increase your patience in the markets because you will know what constitutes a high-probability trade setup and what does not. Remember, this is only possible if you are totally clear on exactly what your Forex trading edge looks like and how to trade it.

For more on trading like a sniper check out my trade forex like a sniper not a machine gunner article. Patience is critical before, during, and after a trade.

We have talked about having patience while your trade is live and briefly about having the patience to pre-define your entries and exits.

We have not talked about patience after a trade however, and it is at this time that you really need a lot of patience. Most traders feel some level of emotion after a winning or losing trade, the emotions are different of course, but no matter how much money you put on the line you probably feel either euphoria or disappointment, depending on whether you won or lost on the trade.

It is at this time, directly after a trade closes out, that you really need to step back and separate yourself from the market. You need to have the patience to not jump right back into the market on the emotion you are most likely feeling after a winning or losing trade. This is something you can write into your Forex trading plan. This will help to make this a habit and will work to reduce the amount of emotion-based trades you make. Sitting on the sidelines is a profitable position….

Learn to enjoy and embrace the patience that is necessary to trade successfully. Thank you very much Nial for your advice and education; all your articles are very helpfull, and also inspirational, I have improved a lot following them and I am very happy beeing member of LTTTM. Usually I am a short tempered guy with hypertension. After reading this article, I am now trying to have patience in trading as well as in real life also. My wife wonders how I suddenly became like this?

Hai Nial ,I find myself a trader having no patience at all after a winning trade and enter successive trades and miserably become a loser. I have to train my brain a lot. I doubt myself addicted to trading. Not everybody has this kind of attitude. EASIER SAID THAN DONE. I was very the secret to successful forex trading when i began trading. My trading excelled, my discretion and intuition improved,I became more comfortable with uncertainty around my market reads.

I work on my patience more than anything when i interact with the market!

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I have read allot of your articles over the years List of etf options but I must say what you have said in this article is the key to the lock of success!! I consider not having patients the third nail in the coffin for most traders, the other two would be Greed and Fear. Simple… very simple concepts but so valuable as usual!!!

Thanks once again Nial, always insightful…. You are a true gift to the trading community. Will the Pin Bars also work in the commodity market on one hour time frames.

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I am considering poneying up for your FX course. Hope you are well. Thank you very much for this fantastic lesson. You are so right that patience really is the key to trading success. My clients are happy and i also have enought time to do other work. Patience is vital in any endeavour. Waiting for the edge you have to show is the only way to be successful in any area of life. I have been Trading indian stock market sensex nifty stock rates 3 years now.

I have dedicated a large amount of time learning and mastering my trading approach. The trading strategy is important however the greatest challenge is not on the charts, its in your mind.

Keep up the fantastic work Nial. Thank you Nail, I start to learn to be a patient trader.

And let patience to be in everything of my life. Patience planetside 2 station cash sale 2016 is as close to a trading silver bullet as we can get. Odd but absolutely true. Patience IS the most important ingredient to trading success.

Especially gratifying to identify this when reviewing trades and those non-trades. I added patience to my trading plan after reading this excellent artical. I agree it is vital to success in trading. Thanks for this article. Great read on a Saturday morning to get the day started. Thank you Nial, another great insight, kudos for giving us so much from your wealth of knowledge.

This article is timely for me,I need to apply it now!!!. Patience and staying out of the market as an active position are golden rules for me now on the daily and 4hr. I can set and forget all day 4 keys to profitable forex trend trading download confident the trade will play out properly.

Thanks so much Nial!! Nial, Your timing is impeccable! Coming off of a horrendous trading week, I feel like the market was out to get me! I was making dreadful mistakes all week, and that was complicating the process because emotions started to creep in, and I found myself losing patience, taking trades on a whim, which made the trading experience very unpleasant.

I had my stop set and my profit target set and it started to look good going perfect and I was three quarters towards my target when it turned around fast this is where people start to panic but if you have the patience to not mess your trade up and let it run. My trade kept going against me past break even and then into negative territory then reversing again and reaching my target!

I have found it best to trade of the daily or even weekly setups looking for a setup that jumps out at you,all you need is 4 trades a month and you will find you make more money than trying to trade all day and making more mistakes wait till you see good setup PATIENCE!

I totally agree with this article, patience is the key to success. Thanks for the reminder Niall. Tanks Niall for your priceless insights. You are a truly good mentor.

Thanks for all your help and priceless insights. I am happy that am a member of LTTTM It is my best investment. Thanks for another great article. I will work on this thanks a lot. I have had a few hard knocks but am finally learning the patience thing.

Last week I did only one trade and this week also one. It is exciting to finally see my account slowly increase. I am looking forward to becoming a professional trader with your help Nial.

Thanks Nial, great article and goes to the core of one of the most important aspects of trading. Your time and expertise in sharing your skill in trading is greatly appreciated.

Look at the way big cats stalk their prey or the way certain predators wait at the bottom of the ocean, perfectly still waiting for prey. I highly appreciate you for this wonderfully article. Always a pleasure to read your articals. My trade got better when I realised that if am patient enough, the market will give me my setup to trade. Opportunities will keep coming if u wait enough. I use a quote that I have heard as my Mantra in Trading and have never forgotten and geld to my personality, and is: Same thing for preplan everything, set the position and just let the market do the job without interfere, because lose a win is worse than take a loss.

Thank you for the beautiful article. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members.

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My Secret Trading Weapon — The Most Important Ingredient to Trading Success By Nial Fuller in Forex Trading Articles 79 Comments. Patient Forex traders make money faster than impatient traders Want to make money as fast as possible in the markets?

Let me explain that in simpler terms… Do you move your stop losses and targets around multiple times after entering a trade?

Patient traders know exactly what they are looking for in the markets If you know exactly what your trading edge looks like and how to trade it there is no reason to not be a patient trader.

Patience is critical before, during, and after a trade We have talked about having patience while your trade is live and briefly about having the patience to pre-define your entries and exits. Learn to enjoy and embrace being a patient trader Sitting on the sidelines is a profitable position….

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