The most difficult thing for traders to do is to sit there and wait. Why? In part because we live in a society that is on a hypomanic dopamine binge. This is never more clearly manifest than by those who absolutely have to be in the markets at all times, desperately need to be trading and simply cannot wait. They are human do-ings, rather than human be- ings.

At one level, this is a type of addiction to excitement, mediated in part by the brain chemical called dopamine. It is the thrill of the game, and the rush that comes from the anticipation of reward.

 "I have to get in NOW because the price is running away from me. If I just chase it this once, it should be OK because it makes me feel so good when I see the price going up, and I am convinced that I can make a killing on this one. Why should I wait for the price to come to me?  I will be missing out and there’s no fun in that. "

Just the thought of making money kicks brain dopamine brain pathways into high gear. The dopamine nerve cells are firing on all cylinders, and the feeling is one of pure exhilaration. It's all good and wonderful---until it isn't.

Suddenly, the position starts to turn against you. You chased, it came back in and now you are looking at a drawdown. How do you feel, and what do you do?

Well, there's no fun in losing, either. Your dopamine brain pathways shut down, and the brain connections that underly fear begin to activate. This is trader volatility, as emotions rush back and forth from highs to lows. Markets do this to unseasoned and impatient traders who are greedy when they should be fearful and fearful when they should be greedy. The end result is confusion, frustration, blaming, self-sabotage, addiction, and toxic trading.  All of these drain you and leave you feeling empty, confused, disillusioned and just plain worn out.

There is a wonderful advantage to waiting for the right entry and exit points. This allows you to be neutral, and frees you from looking frantically for bearish or bullish views to justify your positions. Granted, you are not making money, but you are also (and much more importantly) not losing it. You can take time to reflect, study, hone and refine your trading plan, adopt some healthy exercise and dietary habits, and become a better person. Simply waiting without stress for the right opportunity, allows you to become a more rational and impartial observer.

Patience frees you from active involvement in the chaotic, and often reckless, behavior of others in the markets, and it puts you and your trading plan into a clearer perspective. It allows you to see yourself as a human be-ing, rather than a human do-ing.

There is a Zen Koan that says: Don't just do something... sit there.

Dr. Janice Dorn is believed to be the only Ph.D. (Brain Anatomist) , M.D. (Board-Certified Psychiatrist and Addiction Psychiatrist) and graduate of Coach University in the world who actively trades, writes commentary on the financial markets and manages a subscription-based website. Dr. Dorn has been trading the gold futures markets full time since 1993. She has written over 1000 articles on trader and investor psychology, and mentored over 600 traders and investors. She writes on all aspects of trading psychology and provides a real-time trading service on her website: www.thetradingdoctor.com.