The 3 Degrees of Patience vs Decisiveness
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The trade setups of last week were again successful. All 3 currency pairs provided decent potential to lock in or book profit…
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The 1st setup was on the GBPUSD. I mentioned a short at 1.4865 with a 40 pip stop loss. Price went quickly into my favor and provided +115 pip profit potential at its best point. Price did not hit my target but when I am up 3:1 reward to risk ratio I do not stick around and wait too long to grab my profit!
The 2nd setup was on the AUDUSD. Here price missed my entry order by a bit, but the price action was already showing clear signals: candle wicks on top of the candle. This means a higher chance of an immediate downtrend continuation. The target though was an exact hit.
The 3rd setup was on the EURUSD. This setup was razor sharp. The pair had the best setup because the pending orders provided a perfect entry and exit.
In my opinion the most important elements in Forex trading are as follows:
Patience to wait for a good trigger. Don’t just enter at any spot. Do the analysis and then choose zones and levels that provide you with value. Then have patience for price to indeed move to your area.
The discipline to take the setup when it occurs. When we have done the analysis, we cannot start rethinking the entire approach. We need to execute the plan and not hesitate too long if we see confirmation signals of our approach.
The balance to aim for realistic target BUT be flexible when price chances direction. Having a target is great. And it’s good to have patience when the trade starts out. But eventually we need to decisive when price takes too long or gets very close to our target. Then we can’t show too much patience as the market can eat the profit.
As you can see good trading requires varies levels of patience and speed. We need to be able to shift among these different speeds to succeed.
When I am not in the trade, I take my time to analyze, prepare and scan and have patience for the setup to come to me. When the trigger arrives, then I decide without hesitation. And once in the trade I shift down again and apply more patience. This gradually decreases as the trade evolves in time or gets closer to my target.
Well, hope this helps… Don’t forget you can always reach me with any questions at: [email protected]
Many green pips, Tarantula FX
