Trade Like a Lion

The Art of Patience

This article is my first Atomic Essay. I will be writing 30 Essays in 30 Days about trading concepts and risk management. If there is a topic that you would like me to cover drop it in the comments below. Enjoy!

Trade Like a Lion

Outside holidays, the market is open from 9:30 pm EST to 4:00 pm EST every single Monday to Friday. However, just because the market is open for business does not mean we are required or even should be involved in trading.

Instead, we should trade like lions, and preserve our energy (capital) until our prey is set up perfectly for the taking.

Trade when the probabilities are stacked in your favor, when the market has shown that your system is excelling and following through, when the deck is hot.

New traders believe that if they are not trading every single day then they are missing out on opportunities. That they need to force themselves into stocks to prove their mettle.

However, after trading in a choppy/corrective market, look at the data in your trading analytics. In such markets, your batting average, average gain and reward/risk ratio will be much lower. Most likely, you have made little progress or have entered an account drawdown

So ask yourself, if my edge is missing and my trade expectancy declining, is it logical for me to trade?

Our singular goal as traders is an increasing equity curve. When the environment is not right for our system you should adjust accordingly. Trade less, trade smaller, listen to feedback from the market.

Until test trades or observed setups start working, the optimal action is inaction. Wait until the specific moment where setups are everywhere and the wind is at your back.

Be patient. Stalk your prey. Trade like a lion 🦁

What are your thoughts? Let me know in the comments and leave a like if you enjoyed. Also please share if you found this helpful!

Take care!

Richard