Patience Is A Virtue

It can also be rather expensive at times!

One of the greatest stumbling blocks I have had to overcome while learning the horse win markets has been the need for patience. Being used to trading in the last 30-60 seconds of the greyhound markets, patience was not a quality that could be used to describe my trading style.

I've had to learn patience both in terms of waiting to enter the market as well as waiting to get out of the market.

The quick fire nature of the greyhounds simply didn't work in the horse markets. Initially, I was getting very frustrated when I'd enter a market and it would immediately go against me as the 'noise' took the price in the opposite way I thought it would go. I'd then bale out for a loss only for the underlying trend take the price back into what would have been a profitable position.

I've now learned to ignore much of the noise, hold my position and wait for the natural ebb and flow of the market to come back in my direction to either scratch or take me into profit.

Sometimes though, the market doesn't come back and at some point one has to decide to cut the losses. This inevitably makes any losses incurred somewhat bigger than one might like. However, the effects of this are counterweighted by the benefits when the market does come back. So in the long term, it works out for the best.

Today was an example of the markets simply not wanting to return to my entry position. I got caught a number of times by a vicious reversal that simply would not come back and I was ultimately forced to take the hit. The result? My first losing day for a fortnight.

I had great trouble today trying to figure out the markets. Tomorrow, I aim to get it back.

1 comment:

PhilipH said...

Yes Alistair, having the patience AND the nerve to hang on - but not for too long - was something I was absolute rubbish at! I admitted defeat and just stuck to the occasional punt, mainly when racing is on the box.

I wish you luck tomorrow and hope your aim is spot on!

Cheers, Phil