Trading is a game of probabilities.
It's a vital part of the process to understand.
Read on to find out why...
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It's a vital part of the process to understand.
Read on to find out why...
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Always remember:
If you can have a string of losses.
Then you can have a string of wins.
And vice versa.
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If you can have a string of losses.
Then you can have a string of wins.
And vice versa.
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''There is a random distribution between wins and losses for any given set of variables that define an edge.''
- Mark Douglas
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- Mark Douglas
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Every individual trade is totally random
It's only after a large sample size of trades
That you will begin to see positive results
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It's only after a large sample size of trades
That you will begin to see positive results
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Until you can accept that:
1. Individual trades are random
2. You don't need to know the outcome
3. Every moment is unique
You will always be susceptible to emotionally based errors
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1. Individual trades are random
2. You don't need to know the outcome
3. Every moment is unique
You will always be susceptible to emotionally based errors
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The key is to:
- Think process not profit
- Think next 1000 trades not 1
- Think probabilities not outcome
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- Think process not profit
- Think next 1000 trades not 1
- Think probabilities not outcome
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When you begin to believe in probabilities
You will begin trade from a place of peace.
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You will begin trade from a place of peace.
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A Tip You Can Do Right Now :
Test a large sample size of trades, e.g. 100 trades would be perfect
Observe the randomness of each small sample size of trades.
Then observe the total returns of the larger sample size.
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Test a large sample size of trades, e.g. 100 trades would be perfect
Observe the randomness of each small sample size of trades.
Then observe the total returns of the larger sample size.
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This simple exercise will help create a paradigm shift in your thinking from outcome-based to a more probabilistic mindset once you see the disparity between them.
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It's a simple exercise that can start you on the journey of becoming more processed-focused.
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If you enjoyed this & want to learn more like this go grab my book
''The Blueprint To Trading Psychology.''
Click the link below 👇
zlappo.com
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''The Blueprint To Trading Psychology.''
Click the link below 👇
zlappo.com
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If you enjoyed this thread, please:
1. Follow me (@TraderDivergent) for more
2. Retweet the 1st tweet below to share this thread
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1. Follow me (@TraderDivergent) for more
2. Retweet the 1st tweet below to share this thread
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