I wanted to share an exerpt from a book I'm currently reading by Mark Douglas titled "Trading In The Zone; Master The Market With Confidence, Discipline, And A Winning Attitude." The author is attempting to reprogram the reader so as to begin thinking in a way that will lead to successful trading. One excerpt that stands out for me deals with eliminating emotional risk.
"Remember, the market is always communicating in probabilities. A probabilistic mind-set pertaining to trading consists of five fundamental truths.
- Anything can happen.
- You don't need to know what is going to happen next in order to make money.
- There is a random distribution between wins and losses for any given set of variables that define an edge.
- An edge is nothing more than an indication of a higher probability of one thing happening over another.
- Every moment in the market is unique.
There are some great points brought up and I highly recommend giving this book a read. Thanks to Mark Douglas for the pointers. Go check out "Trading in the Zone."