“The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages. Remember this: When you are doing nothing, those speculators who feel they must trade day in and day out, are laying the foundation for your next venture. You will reap benefits from their mistakes.”

Once you realise the cost of trading and the benefits of being able to sit tight in a market you learn a valuable lesson.

Once you’ve learnt this lesson, you can look at all the other investors on Wall Street and realise how they are actually helping you in your quest.

They’re all trading in and out of the market, every day racking up huge commission fees and losing money. This reveals the opportunity for you to take advantage of. By sitting on your hands and waiting for the profits to roll in, by only making calculated bets.

Always trade according to the trend and according to your plan.

The desire for action will be strong but you need to resist. Because that is the gambling mindset. The professional trader mindset simply sits tight and waits for the opportunities to come to him.

Remember that when you trade, you don’t only pay a fee to your broker and a commission but you pay the spread too.