“I’ve found that the big money was never made in the buying or the selling, was made in the waiting.”– Jesse Livermore
- You have to wait until you have a profitable backtested system and signals before you start to trade. You have to trade price action with a historical edge or your trades are just random.
- You have to wait for a small winning trade to run and turn into a big one. The only way to have big profitable trades is to have patience with a winning trade if there is no reason to exit.
- You have to wait for a signal before you enter into a trade. You need a good reason to enter a trade, a move in price that gives you an indication of a dip to buy or a direction that the market may trend.
- You have to wait to trade until you have enough capital to trade with that is meaningful. The more active you want to trade the more you will need to cover commission costs and bid/ask spreads so they are not a meaningful percentage of your trading capital. Also you need enough capital to fund your goals as a trader.
- You have to wait until you are ready to put real money at risk.