Patience is a virtue

Patience is a virtue

The importance of patience cannot be overemphasised when it comes to trading. A trader, experienced or amateur has to be able to wait for times when the conditions are in his favour. It’s true when people say “that the odds are against you from the start”. However, trading is a game of probabilities, and one should only move when the odds in his favour.

Here are a few quotes from experienced investors/traders

"We don't get paid for activity, just for being right. As to how long we'll wait, we'll wait indefinitely." – Warren Buffet

"The most important quality for an investor is temperament, not intellect... You need a temperament that neither derives great pleasure from being with the crowd or against the crowd." – Warren Buffet

"The Stock Market is designed to transfer money from the Active to the Patient." – Warren Buffet

“The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.” – Jesse Livermore

“Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed. ...Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.” - Gerald Loeb

“You make money on wall street by being very selective and being patient, waiting for those opportunities that are irresistible, where the percentages are very heavily in your favor.” - Seth Glickenhaus


If you have the privilege of speaking to a broker, one of the things that they would tell you is that the people that tend to lose the most are people who trade the most. If you overtrade, it’s only a matter of time before you go bust. If you are currently losing money in the market, ask yourself this question – “am I overtrading?” If you trade 4 time a week, maybe reduce it to 2 and see if your results are different. Overtrading doesn’t just apply to opening a position, it also applies to closing positions. According to Livermore, “The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.” Once you have done your analysis, and decided that a trade meets your criteria, if you decide to go for it you have to be able to “see it through”, unless it becomes a losing trade. That’s why it is important to have predetermined stops when you open a position. Remember the market doesn’t always move in straight lines, which means a winning trade might initially show a loss of a few points before it continues in your direction.

Happy trading