Being impatient is not a good attitude to have in the markets when
trading or investing. It makes you lazy when it comes to research,
planning and analysis of your trading plan, it causes some traders to
exit their trades too soon, and it causes other’s to constantly watch
and fret over their trades.
To add to this, trades that take to long to developed can have losses
such as in options trading, and interest costs for stock traders using
margin can be a problem.
Some traders who don’t like to stay in trades for too long will use an
exit strategy and sell out of the trade if the particular stock or
market consolidates and moves sideways for a while. Traders need to
break out of being impatient. In the long run it will cost you money.
You need to watch the open and see if a stock you own is selling off,
has the stock gapped up.
You can watch to see when the sellers are done and if the stock starts to
tick up this is a good sign. If the stock is not moving up that means
that there are too many sellers and you need to sell the stock.
Make sure to take the time to evaluate a trade before you hit the
buy button. Look at the charts and maybe put in a limit sell order at
the closest resistance level. This will help you be more patient of a
trader and make more money on your trades.
Remember locking in your trading profits is the number one goal. Many new
traders get too greedy and don't exit the trade. This is a mistake but
they let greed take over only to see the trade sell off.
Experienced traders start selling and you watch the stock go down
hoping that it will recover. If you learn to use trailing stops then
you can keep this from happening. If the stock keeps going up you
adjust the stop to lock in your trading capitol. You can watch the
last sale on your charts and this will show you where the volume of
sellers and buyers are. |
