Today's Quote: “Vision without action is a daydream. Action without vision is a nightmare." Proverb.

Today’s title is an old proverb from western culture. It is also an important realization for many developing traders as they progress through the trading ranks. There are two common problems for developing traders. First is a lack of patience. Second is not having the ability to know when doing ‘nothing’ is the correct, best, and most profitable option.

These problems can show up in two very measurable ways. Both of these are common to new and even to seasoned traders. First, traders with the above problems will overtrade. The lack of patience causes them to take a trade before it has developed properly, or to take one that was not even in the plan at all. Many traders feel the need to be doing ‘something’ to put their skills to use. Many fail to understand that sometimes that ‘something’ should be waiting for the next real opportunity.

Second, traders with the above problems will have a tendency to exit trades early without good reason. How many times have you exited a good trade for partial profits, and watched from the sidelines as the trade went on to its original target? Or worse yet, re-entered at a poorly planned entry and stopped out? Traders who have the need to do ‘something’ all the time often over manage trades. When they look back, they often had no reason to exit, but may not see this as a problem because they were ‘managing’ the trade.

There are 3 things that will help. First, just accept the title of this article. The decision to stand aside IS a pro-active decision. Second, a well-laid trading plan will give the foundation to your trading to stop making decisions from ‘boredom’. Third, just ask yourself this question. Am I buying or selling here because this is the proper action based on my plan, or am I just looking for something to do?