Impatience and FOMO are the biggest telltale signs of being an amatuer at trading.
In my opinion, patience, and confidence in the process of your trading system are strong suits of a profitable consistent pro trader.
An amatuer trader looks at a medium to a fairly big green candle and they want to just jump on to take a long trade. My reaction is: wait, hold on, did you plan this trade or you are just jumping the gun because of your Fear of Missing Out.
Taking a long trade just looking at a green candle is not a strategy, or closing a trade prematurely just when a candle forms in opposite direction. It’s just an impulse decision. No planning whatsoever. There is a quote from Ben Franklin, “If you fail to plan, you plan to fail.”
A good trading plan includes things like the level/zone you are watching out for, a candle structure to confirm your trade bias or a price action signal, a proper position size, entry trigger and defined exit levels that include your StopLoss and TakeProfit levels. It can also contain conditions where you will consider adding or squaring off the whole positions.
So next time when you are sitting in front of your trading desk, looking at your screen in anticipation of a trade, ask yourself, “do i have a plan?”
Takeaway: Don’t be impulsive in your trading. Have proper trading plan. Keep patience.
