Action Through Inaction

Discussion in 'Psychology' started by Chuck Krug, Nov 17, 2017.

  1. Michelangelo once said, “genius is infinite patience.” A master trader understands this truth on many levels.

    Infinite patience is essential to staying with the grind and surviving the long and arduous crucible of learning how to win in markets.
    comagnum, d08, dealmaker and 2 others like this.
  2. Patience...and other trading wisdoms...can be a double-edged sword though;

    You have to know, or semi-know, what to expect -- and When to be able to execute a trade.
    If everyone were to apply simply being 'patient'...then all traders would be millionaires.

    Likewise, with learning and being successful in the market. Patience, and/or time and experience, doesn't necessarily equal success.
    It's more of a matter of Quality over Quantity -- some traders/investors can spend multiple lifetimes dabbling in the market, yet gain no profits or success...even when the answer is potentially staring at them in the face.
    Last edited: Nov 17, 2017
    vanzandt likes this.
  3. Chris Mac

    Chris Mac

    Good link, thanks :
    "Markets are dominated by periods of time where there is “nothing to do.” Infinite patience is critical to navigating these periods, utilizing “vigilant inaction” to position ourselves for the inevitable periods of volatility.

    Overtrading, taking profits too early, and seeking action in the markets are typical traits of an amateur."

    As usual, you are unable to read simple sentences, but able to troll as fast as you can.
    We speak about infinite patience, not patience when you wait for your train. Lol.

    vanzandt likes this.
  4. Yeah, and infinite capital
  5. "Waiting for your fat pitch".... is one way to trade.

    And while you can't "change direction with every counter tic", you can learn to trade what many consider "noise". Yes, such noise trading is comparatively manic and runs up the commissions.... but still can be done profitably if you're willing to put up with the hassle.
    Last edited: Nov 17, 2017
    tommcginnis likes this.
  6. Good find thanks. I always believed that patience is the holy grail of trading!
    Last edited: Nov 17, 2017
    vanzandt and Chuck Krug like this.
  7. Handle123


    I often think we do as in actions of what an activity or taste means the greatest to us, we get so good at it that after awhile we don't even notice we doing it any more.

    Some picky coffee drinkers, myself included, we wait for entire brew to happen, we know that first coffee going through grinds is strongest and last going through grinds the weakest, so to get best tasting, all the coffee must get brewed and sit in the pot/container for a minute then get that cup. I know that longer the coffee stays in the pot it is getting older and acidity is lining the pot or container as minues goes by so after so much time that coffee has to be dumped and make new but with slightly more acid on the walls of the container. Watch anything long enough, you learn concepts, you learn taste, acidity, stale....Trading is so much the same way, more time you put into it.

    Good trading all and have pleasant weekend.
    Stocktracker and PennySnatch like this.
  8. ironchef


    I have some patience but not infinite patience, life is finite after all.

    I cannot wait forever because I know I don't live forever.
  9. I just wanted to say what this blogpost means for me personally.
    I trade discretionary, but of course, I have rules and a strategy.
    But when over the last dozens of trades, I thought: 'This or that is probably going to happen' And then I go short or long. I find the outcome has been around 50/50. , Nothing wrong with that, if the losers are smaller than the winners.
    But the times when I have thought: 'I have seen this scenario before, in fact I KNOW this scenario' The outcome has been much better, more like close to 90%, and with much less pain, and my stop placement was much clearer.
    I hope this makes sense.
    volpri likes this.
  10. d08


    Being too eager, impatient is actually very common for traders and I believe very underestimated. Most will try to force trades, take entries that have a poor risk profile while they should be looking at completely different strategies - take the long term view as opposed to seeking immediate rewards. It's about directing that impatience towards something productive, time and energy management.

    Inaction is also a decision and it's often the right one. People are being trained to always take action despite having zero/lacking information which results in disasters.
    #10     Nov 18, 2017
    comagnum likes this.