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The Importance of Being Patient and Persistent in Your Trading
Read an excerpt from Jeff's teaching and hear how his educational lessons help improve subscriber's trading approach.
By Jill Noble
Fri, 15 Jun 2012 17:00:00 ET
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 "Patience is a virtue."
 
 "Good things come to those who wait."
 
We've all heard these truisms. Still, the pace of living in a "fast-food society" means many Elliott traders must fight the urge to rush their wave count. Earlier this month, Elliott Wave Junctures subscribers learned this important lesson from Jeffrey Kennedy about applying the Wave Principle real-time:
 
A result of the Information Age is that we demand instant gratification. I believe this mindset affects our analysis, and certainly our wave counting, because it is commonplace to identify the end of a wave pattern before it is truly complete. One way to circumvent this issue and incorporate patience is to insist on price confirmation
 
Persistence is another integral part of successful analysis and trading. A good example of this is the e-mini S&P 500 in which I identified the end of a correction at 1329.75. Even though the pattern didn’t end there, the move up was still countertrend and destined to be more than fully retraced, which it was. Despite the moderate new high, our belief in the bearish case was persistent because there was no evidence to the contrary.
 
It is frustrating to find yourself underwater on a trade because you identified the completion of a wave pattern too soon. This frustration is compounded when you believe a forecast is incorrect only to see it come to fruition later in a slightly different manner. To avoid this, remember to be both patient and persistent in your analysis and trading.

Excerpted from Kennedy's 6/4/2012 EWJ course notes
(PDF available to subscribers for this and every lesson)
 
We've had an overwhelmingly positive response to Jeff's new Elliott Wave Junctures service -- which you can try risk-free. This patience/persistence lesson has been a favorite. Here are just a few of the comments we've received:
 
One feature of "Junctures" I like is when we revisit an analysis and talk through the thought process we should employ as a wave pattern unfolds, especially when it unfolds differently than we anticipate. As I listen more and more to Mr. Kennedy, I'm seeing more and more wisdom in his guideline of "waiting for confirming price action". Please continue doing what you are doing. It makes a difference.
-Phil H.
 
[The] EWJ on patience etc really struck a chord as this is still one of my major issues in achieving consistent results --as I am sure it is with a large number of traders -- thank you Jeffrey for driving this message home.
-John R. 
 
The lesson on Patience and Persistence is what trading is all about for me. I will spot a pattern and pull the trigger too soon. I need to work on the Patience and Persistence, and this lesson is my homework.
-Thomas P.
 
 
FREE BONUS: Subscribe today and get instant access to the complete Elliott Wave Junctures video library going back to April 2, 2010 -- that's 39 unique video trading lessons!
 

Tags: Elliott Wave Education, Elliott Wave trading, Jeffrey Kennedy, risk appetite, risk management, technical analysis, Traders, trading lessons
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