In a previous article I discussed trading psychology at very basic level, but the more I trade and study about the markets it seems that this is one of the corner stones to be a successful trader. I came across these videos where Mark Douglas discuss a few things which put trading in a different light. Its obvious when we trade we all have an edge or a collective pattern that allows us to trade without fear and uncertainty. If you are wondering what an edge is, its a higher probability of a decision taken actually happening over the other but within a series of trades.
Mark Douglas also describes that trading is not about being right or wrong but we should rather learn to think in probabilities. Therefore when I see my signal or edge I should think that the odds are in my favour and that the market will buy or sell at my entry point. So what happens when I see my edge and it fails? All it means is that other traders didn't come into the market, because they didn't have the same conviction in what I was seeing therefore it failed. If a trade fails even though my edge is present and I've had success in using this edge in the past doesn't mean it will have the same outcome again.
No point in judging if the trade will work or not but rather place as many probabilities on my end as possible for success. Remember its all probabilities so if you have the correct money management and trading plan in place you should trade your edge without hesitation
No point in judging if the trade will work or not but rather place as many probabilities on my end as possible for success. Remember its all probabilities so if you have the correct money management and trading plan in place you should trade your edge without hesitation
No comments:
Post a Comment