Prop Firm Blog – Propvator

Trading Talk with Eman · Ep. 17

A lot of people say trading is a waiting game, and they are right. However there is a specific way to play that game, and it can be simplified.

The best example I found is in nature. A lion hunting its prey waits, sometimes for days, with its survival at stake, but it still follows its plan. That is strategic patience.

Key takeaways

1
Accept trading is different

In most jobs more action means better results, but in trading it is often the opposite.

2
Stop staring at charts

Long hours in front of the screen lead to overthinking and seeing things that are not really there.

3
Do not force trades

Taking more trades to get more results just pulls you into low quality setups and a bad cycle.

4
Wait for your setup

Do nothing until your trading plan presents itself on the chart, then there is no more waiting.

5
Act without hesitation

Once your setup appears, take the trade with full confidence, because the thinking was done beforehand.

6
Build the confidence

If you hesitate, work on your confidence through back testing and following your plan until you see results.

Why more action does not work in trading

In most jobs, the more action you take the better your results. If you are in sales, they tell you to ring 200 phones a day. It is a numbers game and action wins.

Trading is not like that at all. More action does not equal better results, and most of the time it is the opposite.

Staring at the charts for long hours makes you overthink and start seeing things that are not true. Taking more trades pushes you into low quality setups, and that is where the damage happens.

“In trading, more action doesn’t equal better results. In fact, most of the time it’s the opposite.”

The bad cycle of chasing trades

Say you take a high quality trade and hit your 1 percent target. Then you think more trades means more results, so you take a low quality one and lose it. Now you are breakeven.

You take another to get it back, lose that too, and now you are trying to recover. You are stuck in a very bad cycle.

All of it comes from one misconception, that more action equals more results. In trading that is simply not true.

How a trader actually waits

A trader does not wait like a lion, but it is still a game of patience, specifically strategic patience with a plan behind it.

You wait until your setup presents itself. Your setup is the set of variables you see on the chart based on your trading plan, for example a moving average crossover or an indicator giving a signal.

You wait until you see that. Once it appears, there should be no hesitation and no more waiting. That is when you take action.

The line between waiting and hesitation

The thinking takes place beforehand, when you are crafting your plan. Once your setup shows up, you act with full confidence and no thinking.

There is a thin line between waiting and hesitation, and there should be absolutely none of the second. You already have a plan in place.

If you cannot pull the trigger, that is a sign you need to work on your confidence. Back testing and following your plan until you see results will get you there.

“You do the thinking beforehand, and once the setup presents itself, you take full action without thinking.”

Find your prop firm on Propvator

Once your patience is sorted, compare prop firms on Propvator and find one with fair conditions to trade with.

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