Successful traders think in probabilities.
U don’t have to know what the market is going to do to make money. In fact, U CANNOT
know what the market is going to do, so trying that would only interfere with your thinking in
probabilities.
The techniques you use should give you an edge, which is nothing more than a probability that the trade will go in my favor.
Take every clear trade setup according to my edges; this guarantees that the probabilities will work in my favor.
One is never right or wrong, because right and wrong on trade outcomes has absolutely nothing to do with successful trading which requires thinking in probabilities.
Trading edges are like a coin that is rigged to give heads more often than tails. Taking a trade setup is like flipping the coin. The concept of ‘right’ and ‘wrong’ do not apply to trading, anymore than it would apply to the rigged coin coming up tails.
Don’t try to predict outcomes. By taking every clear trade setup, I generate a sample size sufficient for the probabilities to work in my favor.
Do not seek ‘certainty’ on trade outcomes, because certainty does not exist in markets.
Always pre-define my risk prior to taking a trade. If a trade does not work, it’s history and patiently await the next trade setup.
Have profit objectives on every trade, but no beliefs as to what will happen next. If a trade does not go in my favor, I am no more concerned than a casino operator would be about losing a single hand of blackjack.
The market is your own personal casino. By taking all of ur clear trade setups, the casino is rigged in ur favor.
Every moment in the market is unique…anything can happen!
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