Trading with patience involves using trading metrics to help manage one’s emotions and mental state while trading. Metrics such as profit/loss, risk/reward ratios, and win-loss percentages can provide a sense of objective evaluation of one’s performance and can help traders make more informed decisions.
By using metrics to track their performance, traders can better understand their strengths and weaknesses, and make adjustments to their trading strategy accordingly. Additionally, metrics can help traders identify patterns in their trading behavior and identify areas where they may be prone to making emotional or impulsive decisions.
For example, a trader who frequently enters trades with a high risk/reward ratio may want to focus on developing a more conservative trading strategy, while a trader with a high win-loss percentage may want to focus on increasing their position size to maximize their profits.
Furthermore, by keeping an eye on these metrics, traders can better manage their emotions and stay calm under pressure. When faced with a losing trade, for example, a trader who is aware of their risk/reward ratio and win-loss percentage can remind themselves that losing trades are a normal part of trading and that their overall performance is still in line with their expectations.
In conclusion, trading with patience involves using trading metrics to aid trading psychology by providing a sense of objectivity and perspective, helping traders make more informed decisions, and managing emotions and mental state.