The Most Dangerous Pattern In Trading

Below is a chart I consider the most dangerous in trading.

I consider it to be the most dangerous because the price is doing precisely nothing other than ambling along between two lines. Having had an excellent year, gold is now stagnant and simply churning within a consolidation pattern. When prices start to do this, particularly after an instrument has done well, boredom begins to creep in on traders.

Boredom arises when there’s a gap between what the market demands and what the brain wants. Markets reward patience and long stretches of inactivity. Our brains, on the other hand, crave stimulation, novelty, and the illusion of progress. That conflict is the boredom trap: the internal urge to “do something” when the correct action is to do nothing.

I could build an argument to do something. I could tell myself something along the lines of: “A core feature of the 2025 rally is that traders don’t solely drive it.” Central banks continue to accumulate gold, and institutional flows remain strong. When the largest buyers in the market are still accumulating, supply tightens, volatility rises, and pullbacks tend to be shallow. Therefore, it is safe to go early.

Or that gold is behaving like a classic hedge in a world searching for stability.

But these are just stories I invented to convince myself to do something. Boredom becomes particularly dangerous in trading because it mimics opportunity. When nothing is happening, the mind begins inventing stories: “Maybe I’m missing something,” “Maybe I should tighten this stop,” “Maybe I should get in early,” or “Maybe this next small setup is better than it looks.”

They’re attempts to relieve the discomfort of inactivity. This is how traders end up taking subpar trades, forcing entries, tinkering with stops, or over-trading. Not because their system requires it—but because they want to feel like they’re doing something productive.

Boredom is a signal, not a command – traders need to recognise the difference between insight and boredom.

The truth is that boredom is a test of discipline. Most traders fail it because they confuse feeling inactive with being ineffective. Boredom isn’t a gap to fill—it’s part of the process.

Patience is free.