Patience doesn’t always come easy in all sorts of endeavors, least of all trading. Just when I think I’ve waited long enough to short a stock and then do it, the stock has more upside left. When I think I’ve waited longer than most to buy, it has more to drop.
I believe you can make more money sitting and waiting than trading.
Your plan could be perfect but you can take paper cut after paper cut trying to find the top or the bottom. Worse is if you do not cut the trade that is not going your way because you are patient, now patience works against you even more.
You thought you knew when you were going to get out of the trade if you were wrong. Ironically though, when you think you waited long enough (as I have done) you believe you have to be right from this point forward, and the market owes it to you to prove you right.
All of that is a waste of time and mental energy and can result in loss after loss.
Just sit on your hands.
Wait for confirmation.
Draw out key levels on the chart and wait for confirmation that a trend has reversed. It’s much better to be a couple of dollars late than five or ten too early.
It doesn’t matter if you miss some of the trade or even the entire trade. There will be more opportunities in the next hour, the next session, and so on.
There is nothing wrong with joining the trend as well (although more difficult for me personally). Take a smaller size than you normally would of course as if your thesis has not changed, it is much harder to take a trade against your thesis.
But sometimes the thesis is actually biased, and when what you want to happen or believe should be happening, is not, well then it is better to again sit and wait, or trade the direction the market or stock is going.
It’s hard to master patience as a beginner, trying to build an account, or just learn. You need more days, weeks, months observing the market, understanding how stocks move (or sometimes don’t move very much).
You will need to develop and accept a longer-term mindset.