If you have read "God Father", you might still remember how Michael Corleone patiently took his time, waited for the right opportunity and won decisively with one strike that destroyed his opponents.

Trading stock is the same. In general, active traders lost to patient traders. A lot of traders, including me sometimes, could not control the urge of jumping into a wrong trade worrying about missing the opportunity of making money. In a lot of cases, by simply taking a step back and sit tight will avoid loss.

Stocks are like fishes, there are many of them in a pond and there are many good fishes. Trading stock should be like fishing, patiently waiting for the fishes to take your bite. If one fish passes by, there is always another one. So why in a hurry?

That's why successful traders always said, if you miss a good entry point after your favor stock takes off, don't chase it, wait for a pullback before you enter. In the worst case, even if you miss this one stock, there are always others. Remember, a stock is simply a small fish in a big pond, in this case, the pond being the stock market.

Patience also is needed for making good profit. Once your favorite stock is bought, you need to give it time to develop. As long as your cut loss point is set, let the stock run to achieve greater profit.

My personal experience is, I always lost money when I lost my patience.

In a bear market like this, patience is even more important. Confirm the short term trend before jumping in. If you miss a bear rally, so what? Take that as a great opportunity for you to build short positions and make a killing at a later time because we all know, the longer term trend is down. Don't swim against the current. 

To win big, be patient. Just like what Michael Corleone did.


[ 本帖最后由 股帝 于 2008-7-9 09:28 编辑 ]