TRADING MINDSET: Patience always pays off

TRADING MINDSET: Patience always pays off

TRADING MINDSET: Patience always pays off 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Successful trading starts with a good Trading Mindset.

First, the bad news.

Believe it or not, Trading Mindset is not something someone can teach you.

In fact, a strong Trading Mindset is something that you must develop yourself.

Luckily, it easier than it sounds.

By looking at Full-Time traders, you can learn so many tips on how to avoid Trading mistakes.

In today’s live trade on our TradingView chart we have the opportunity to discuss Trading Mindset.

And in particular, you can learn why patience is an essential skill in Trading Psychology.

Trade setup – 8 Jan 2020

Trading psychology patience always pays off Setup 1

The setup on today’s TradingView chart is very clear and we traded is many times in the past.

The three conditions that we always check in this case and which are verified here are:

    1. Two bottoms (displayed by the Bottoms Tops Signal) with the most recent being the highest
    2. The RSI Exhaustion moving higher, just like the price
    3. The RSI Exhaustion being bearish exhausted (colored red)

All three conditions are met and so we have a very high probability setup.

The only concerning thing that emerges from the analysis is that the Levels and Zones indicates a major resistance about halfway into our Trading Target.

Trade update – 8 Jan 2020

Trading psychology patience always pays off Setup 2

The price moved higher rapidly and already broke the resistance to the upside, thus turning it into a support.

This allowed us to move the stop loss to breakeven and so, now, we are in a risk-free trade.

Trade update – 9 Jan 2020

Trading psychology patience always pays off Setup 3

The trade setup got compromised since we now have a sell setup.

The double top and the decreasing RSI Exhaustion suggest that the price might move lower from the current level.

We have three options here:

    1. Close the trade and take the profit (very safe)
    2. Close the trade, take the profit and open a short trade (very aggressive, since we are above a major support)
    3. Keep the trade open but trading it safely

We choose the last option for a few reasons.

First of all, because our initial setup was excellent and we know from past experience that, once a similar setup appears, the chances that it eventually reaches the target are very high.

Second, because as explained above, the price is now trading above a major support which should put a lot of upward pressure.

In this regard, it should help us reach the Trading Target or, at least, it will prevent the price from falling lower.

Lastly, because we are already at breakeven so, in the worst-case scenario, we will be making money!

Trade update – 9 Jan 2020

Trading psychology patience always pays off Setup 4

The price has moved all the way down to the support level but, as expected, it is preventing it from falling lower.

Trade update – 10 Jan 2020

Trading psychology patience always pays off Setup 5

We just got another short setup just like the one that we had before, but this is weaker.

The support that helped us before, should help us once again should the price want to go down again.

We’re wondering how many beginner traders are getting frustrated by this long trade.

What we do here, instead, is that we avoid getting emotional and stick to the technical evidence.

The price formed some concerning short configurations but, so far, they are failing to move the price significantly lower.

This allows us to say that we should ultimately close the trade with a nice profit.

Trade closed – 10 Jan 2020

Trading psychology patience always pays off Setup 6

And we got our 4x profit by reaching the Trading Target.

How amazing is that?

It’s incredible to see how patience always pays off.

If you want to learn how to make money on foreign exchange, then this trade was definitely for you.

Why?

Because the initial setup and the technical analysis that we made on the forex chart were absolutely perfect.

Moreover, our easy forex strategy worked perfectly as well.

However, many beginners could have made many forex mistakes in this trade.

In fact, it required a strong Trading Mindset and the biggest lesson that we can learn here is that patience always pays off!

In this case, it was a 4x pay off.

How focused you are during your trades?

Do you feel that you have a strong Trading Mindset or sometimes you make silly trading mistakes?

Feel free to share your experiences with fellow traders by leaving a comment on the YouTube video above!