Are You Being Patient Enough?
Patience…
So easy to talk about, but so hard to embrace…
Here is how to fix it…
You should be very thankful for this fact…
It is the reason why it is possible to take reliable, repeatable profits from the world’s financial markets!
Once you realize that the markets are just an endless auction for the same thing over and over…
It becomes obvious that for any transactions to go through, there must be a difference of opinion…
One person thinks their money can go to work in this stock, while the other thinks it can do better for them elsewhere…
You would think that one must be wrong, and the other right…
One is a dummy, and the other is the “smart money”…
However, that’s not always the case…
Often it is the lack of patience to sit through the market wiggles and corrections that drives these entries and exits…
If somebody bought a stock at $14 and it has rallied to $25, and they might think the stock will need to spend several months correcting or going sideways…
They might not have the patience to sit through all that…
They might choose to sell…
That sale might be to a trader like you who has shorted the shares at a better price and is buying from the impatient investor to take profits on your position.
If your analysis shows that a market has reached an area of likely reversal, you will probably be buying from an investor who is sick of holding on to a loser and is impatient to put that money to work in something that they feel is more likely to Gooooo!
Their impatience and lack of in depth analysis IS your opportunity!
They offload what they perceive to be a bad risk to you who believes the trade to be a good risk…
And the markets book yet another of the hundreds of millions of transactions that go through every day.
It’s like the bank who auctions off a dilapidated house…
They just want their money…
They lack the patience to hire a contractor to remodel…
The patience to list the house and wait for a buyer…
So their lack of patience is your opportunity as a real estate investor!
The markets are no different…
They will always extract a premium from the impatient to reward the patient for their action.
So be patient yourself and wait for the trade opportunity to come to you…
Because you don’t want to give away any premium to somebody else..
Then, think about who might be active in the market you are analyzing…
Put yourself in their head for a few minutes and think about why they might be impatient…
If you can find a crowd of impatient investors right at a potential turning point, you can capture that “patience premium” and then sit back as the market transfers money from the impatient to the patient investor…
And since that patient trader is you...
The profit is all yours!