How to be patient

Hi..

I am a new investor in the stock market, and whenever I have sufficient funds, I always rush to invest them in good stocks. If I feel that a stock is a bit undervalued, I jump to buy it, though it may fall further later. For instance, I bought Praj Industries @ 119, though it fell back to 100 after that. So I just want to know how to be patient in the stock market to get a better deal. Can anyone please help?

- Ali

Hi Ali,

Patience can not be taught. You have to experience such incidents many times to become experienced of your mistakes. And next time when you try to jump, your subconscious will stop you from doing it.

Like with Dabur, whenever I bought it above 100, i incurred losses, soon it falls to 100. and when i short sell dabur at 100 it goes to 103-104. After beaten by such misadventures, i concluded that one should enter dabur below 100 only and wait for 103-104.

You must understand the share you are trying to invest in.. it's price, weekly highs and lows, volatility (daily high lows difference), 52weeks high lows, moving averages, supports, resistances, etc.

and other way to save yourself from such misadventures, is to buy HALF qty when you see it's buying opportunity. and when it falls buy the other, else take the profits.

Thanks Rizwan Sir for the reply. I too am trying to be patient in the market. With time, I hope that I will be able to keep my cool at all times

Dear CoolCritic,

Praj's support is seen at 100 - 95, and resistance seen at 145,160,186.5,202, 250 you can wait for 190 to get handsome returns. So, buying at 119 was not a bad decision. Perhaps you did not know about the support hence got panicked.

And please don't suffix "sir" to me, i'm as human as you are

No no... I never panicked in Praj! I always knew it was a good buy @ around 120. It was just that I mourned over it since I bought it by selling Future Capital @ 525 (bought it @ 480), which went up to 610 when Praj came to 100. So I just thought that if I could hold it, I would gain by selling FCH higher and buying Praj at a lower rate. But now I have decided to keep certain amount with me (like 5k-6k) at all times for buying stocks at a lower value, as and when available. I was tempted to buy GujNRE @ 100, but had no cash at that time

Keep a trader's diary. Write out all those situations that piss you off.
When you complete the trade, analyze all the situations.
If you record your emotions and various situations, you can understand by sowing. You will understand why you are so impatient.
Take a break. If you do not have enough patience, and you make several mistakes in a row, then pause the trade. Take time to take your mind off the market. Get enough sleep, take time for your family and friends. Or just do nothing, take a break. Close the terminal and do not return to the market for a while.
Follow the trading timeframe. If you analyzed the market on an hourly price chart and opened a deal according to the hourly timeframe, do not rush to exit the deal in 15 minutes. Market fluctuations are a common occurrence within the hourly timeframe for the market. Make a decision to exit the transaction on the timeframe on which you entered the market.

New investment is a perfect

Most traders are too eager to jump in and trade whenever any opportunity arises. It could be helpful sometimes to take a break, allow oneself to have the time to look at the bigger picture, instead of focusing too much on one aspect.

It takes a lot of determination to not to jump to the conclusion. It is very important to have some patience and see how it goes before punching to invest. One could say that it is the greed that overcame you and you decided to jump in hoping to get profit. That way will never work.