If A + B + C, then D.

The answer is patience.  In this equation, or one much like it, we just may find the answer to impatience. For instance, let’s assume D is a high probability trade opportunity and A, B, and C are the factors that must be present to produce D. If there is no A, B, and C then there is no D.  Notice I did not say A, B, OR C, nor did I say not A BUT B and C: I said A, B, AND C.  There’s that word again.  We cannot be tempted to replace the word AND with any other word, especially OR or BUT.  If we do then we open ourselves up to any number of trading errors based solely on our inability to practice patience.

There is an A + B BUT no C.

Here we fall victim to not wanting to miss something, or what we refer to as the fear of missing out.  We rationalize, allow our ego to convince us that we should not miss this opportunity, and we enter the trade knowing full well that our trading edge is not as sharp as it should be.  We say to ourselves: “A + B looks really good so why wait around for C?  What if C never comes?  Then I risk missing a great opportunity. I would really hate to miss the move while waiting on C.”  Wrong!  We impatiently pull the trigger, breaking our rules.

There is an A or B or C BUT no A + B +C. (more…)