Three must-have behaviors for trading: pattern confirmation, patience and probabilistic analysis

When you combine the features of these three trading behaviors, namely pattern confirmation, patience and probabilistic analysis, you will find yourself thinking like a successful trader.

1. Chart pattern confirmation 

Pattern confirmation covers a very wide range including technical analysis, and more precisely, your favorite transaction type. The key is to find a trading strategy that fits your personality and focus on these patterns.

If you do not choose the type of transaction that suits you, then you will not be very successful in trading. Many traders like to follow the trend. They like the moving average crossing strategy, trading based on the Ichimoku cloud, the momentum indicator DMI and trend indicator ADX.

Other traders prefer range trading. We found that range trading is the most profitable and most frequently used strategy in the Asian time period. When conducting range trading, traders look at charts over multiple periods to find strong support and resistance and use shock indicators such as CCI to detect overbought or oversold conditions. Due to the strong support and, many investors can better handle the profit and loss orders and exiting timing.

Finally, many investors like the 24-hour foreign exchange market because they can quickly enter and exit the market thus enjoy their short-term trading strategies here. They don't mind the performance of the exchange rate in the past week, month or year but only focus on the performance of the exchange rate today. They usually use short-term ranges or breakout strategies during the three main days of the day.

No matter which model you adopt, you should learn to identify and use the trading model that suits you the best.

2. Be patient

Patience is the main indicator of an experienced trader. Just like a sailboat must wait for the wind before sailing, a trader should wait for the market to run in a pattern that best fits its trading pattern before entering the market. You cannot force the market to run as you wish, just as a sailboat cannot change the direction of the wind.

We often find fresh traders eager to enter the market as if they are worried about missing the next big trend. Experienced traders don’t worry about missing opportunities, because they know that opportunities always exist, and today's trend is either a reversal or a correction of the original trend, which will always provide new opportunities.

Whether it’s trend trading or range trading, patience is a must for all traders. You will wait only when you have patience to enter the market when there is a reward-to-risk ratio.

When you recognize a trading pattern that fits yourself, you must have enough patience to wait for a chance to enter and exit. Many investors enter prematurely, which often leads to failure.

3.Analyze the probabilities

Probabilistic thinking will help you become a senior trader. Thinking about probability will motivate you to enter the market at the right scale. The market trend comes and goes, providing trading opportunities all the time. The key to success is to enter the market with a high probability of profit, so as to maintain a good risk-reward ratio.

Starters are often affected by current trades, while experienced traders know that their trades are only one of the hundreds and thousands of trades. How can you fix it if you are too much affected by today's trading? Reduce your trading scale and think like a mechanical trading system. 

Trading is a game of probability. You can think about probability from three aspects of win rate, profit and loss ratio and bankruptcy rate. Many people simply pursue a high win rate, which in fact leads them into a dead end.

Conclusion

The three trading habits above may seem to be the topic of advanced trading, but they should be equally adopted and applied by starters as well as experienced traders. When you focus on finding a pattern that suits your personality, while waiting patiently for the pattern to be established, and then entering the market at the appropriate scale by analyzing the probability, you will enjoy your trading very much.