When asked how they are profitable, many profitable trader uses these two terms, patience and discipline. However, when a new technical trader hears this, he rarely understands what this means.
Discipline and Patience
Now, lets start with discipline. A discipline trader means doing something even when you don't want to do it, or doing something you don't want to do.
And patience means waiting for your turn, or waiting for something to happen.
But we all want to trade right?
Yes, of course, that is what we do as stock traders. But having the discipline means not trading when the trading is not good, even though you want to. And having patience means waiting for the good trading to return again.
In simple words, when the time is not right you must do nothing. If your edge is not present; there is no edge and no action to make. When the market is not offering what you want, or is confusing, you must develop the ability to wait, and do nothing until the time is right again.
Ability To Doing Nothing
This simple idea of "doing nothing" stokes a fear in most people, especially in todays give me distractions, social media world.
Many stock traders will asked "Well what am I supposed to do if I am doing nothing?" Doing nothing seems contrary to getting what you want, getting somewhere. In and outside of the trading world everyone believes in order to be a "trader" you must trade constantly.
This is why most traders lose money. Because they do not understand that there is a time for doing absolutely nothing. And that time is most of the time!
