Patience
The willingness to wait for high-quality setups instead of forcing trades — the rarest skill in retail trading.
Famous trader Jesse Livermore wrote that he made his money sitting and waiting, not buying and selling. The best traders in history all confirm the same thing: the money is in the patience to do nothing until conditions are right.
Related terms
Discipline
beginnerThe ability to follow your trading plan exactly — without deviation — regardless of how you feel in the moment.
Process Over Outcome
intermediateThe mindset of judging trades by whether you followed your plan, not by whether the trade was profitable.
Overtrading
beginnerTaking too many trades — usually driven by boredom, FOMO, or revenge — and bleeding capital through commission, spread, and forced setups.
FOMO
beginnerFear Of Missing Out — the urge to chase a move that's already running, usually resulting in buying the top or shorting the bottom.
Trading Journal
beginnerA written record of every trade you take — including reasoning, emotions, execution quality, and lessons learned.
Revenge Trading
beginnerTaking impulsive trades immediately after a loss to try to "get back" — the #1 account killer in retail trading.