Be patient for the great opportunities to make money in Forex trading
Patience is regarded as one of the greatest human virtues in almost all religions and spiritual traditions. Patience, whether virtue or not, is definitely a very beneficial and profitable characteristic when it comes to trading the Forex market.
The truth is, good opportunities in this market are infrequent at best and rare in reality, regardless of whether you are day trading, swing trading or longer-term position trading.
Of course, the day trader will have trades generated more frequently than the swing trader, however, the point is that most of the time as a trader is spent at just looking at the charts and waiting for those good opportunities that come once in a while.
In this sense, trading is much like hunting and we can draw many parallels between the two. The hunter doesn’t burst fire at the prey, instead, he is patient and he waits for the exact right moment to pull the trigger in order to catch the prey.
It’s no different in trading Forex. Great traders are much like hunters and they are able to be patient until they see an opportunity that is good enough and worth catching. They won’t just shoot at anything that moves because they know that most of the moves in the Fx market are just noise and not worth to be traded. They know that opportunities don’t come often and they use their time to prepare for those opportunities instead of wasting their capital on useless trades.
Average traders need to take trades constantly in order to feel like they are working or doing something. However, this is not a good approach to Forex trading and is likely to result in lots of frustration, headaches and, in the end, losses. The great trader doesn’t care how many trades he takes today, this week or this month. He only cares about taking good trades and that’s what he is focused on doing! It’s much better to be a trader who takes 1 profitable trade per month than a trader who takes 10 trades per day and at the end of the month finishes at breakeven, or even with a loss.
As we said at the beginning, trading opportunities are rather rare, or at least rare for any particular trading strategy. For example, if you are a swing trader or a position trader, you will benefit from larger moves in the market that last for weeks or even months while daily fluctuations are going to be pretty much just noise for you.
The really great opportunities come once or twice per year, such as when the Bank of Japan or the European Central Bank started their quantitative easing programs in 2013 and 2015, which resulted in massive 20%+ depreciation of their currencies that lasted for months.
Opportunities in these kinds of situations are easy prey and it’s our duty as traders to take them. On the other hand, there is no point in trying to trade when there are no good opportunities regardless of how long the dull period is lasting.
The best Forex traders wait on the sidelines fully ready to catch the good opportunity when it comes because they know that In Forex trading, money is made by catching easy prey and not by swimming against the river!