Learn How To Fish
- Thread starter VJAY
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Post by avny.....
PAYING FOR INFORMATION
A trader saw buying come into the market, and he quickly jumped on board. He saw that the odds of taking out a recent high were good, given the size of the buying. To his surprise, however, the trade stalled out before the target and reversed. He quickly exited with a tick loss.
He turned to me and said, "I just paid for information."
When the market bounced higher a few ticks several minutes later, the volume was weak. No big players were taking the long side. He aggressively sold and quickly made a couple of points.
He placed a good trade, and it didn't work out. He didn't view that as a threat, as a loss, or as a failure.
He viewed it as information. The market was telling him that we weren't going to take out the recent high.
If your setups are valid, there are only two kinds of trades: Those that make you money and those that give you information.
Don’t expect to win or lose on any one trade, just follow your trading edge and trading plan religiously and know that if you do that you will succeed over a large series of trades.
PAYING FOR INFORMATION
A trader saw buying come into the market, and he quickly jumped on board. He saw that the odds of taking out a recent high were good, given the size of the buying. To his surprise, however, the trade stalled out before the target and reversed. He quickly exited with a tick loss.
He turned to me and said, "I just paid for information."
When the market bounced higher a few ticks several minutes later, the volume was weak. No big players were taking the long side. He aggressively sold and quickly made a couple of points.
He placed a good trade, and it didn't work out. He didn't view that as a threat, as a loss, or as a failure.
He viewed it as information. The market was telling him that we weren't going to take out the recent high.
If your setups are valid, there are only two kinds of trades: Those that make you money and those that give you information.
Don’t expect to win or lose on any one trade, just follow your trading edge and trading plan religiously and know that if you do that you will succeed over a large series of trades.
Shared by avni.....
BY "Nial FulleR"
Stop expecting to win on every trade, and you just might become a winning trader
The reasons why so many people have trouble making consistent money in the markets can essentially be boiled down to the fact that they simply expect too much. Most traders try really hard to control all aspects of their trading, whether they realize it or not. In reality, the market cannot be controlled; all you can do is control yourself. But, it’s more difficult to control our own actions and thoughts than it is to over-trade or risk too much on a trade because you’ve convinced yourself that that ‘this’ trade will be a winner. People convince themselves they are right about their trades; it feels good to think we are right, indeed many traders actually become addicted to the feeling of entering a new trade, even though they have long histories of losing in the market.
You have got to learn to look at yourself as the root of your trading problems. It’s not your broker’s fault, it’s not the market’s fault, it’s your fault you are losing money, and you’re probably losing money because you expect to win on every trade and so you largely ignore the risk involved with trading. People tend to focus way too much on the potential reward of a trade and not enough on the risk. However, as we have already discussed, the potential to win or lose on ANY ONE trade is essentially equal. This is because your winners and losers are randomly distributed, you have to remember this. You can assign an overall winning percentage to your trade strategy over a long series of trades, but you can’t assign a winning percentage to any one specific instance of your trading strategy, this is a difficult concept to grasp at first, but it’s very important. it’s up to you to understand the points discussed in today’s lesson. You need to understand them as well as trade in-line with them by not becoming emotionally attached to any one trade and by understanding that you can be a profitable trader if you stick to your trading edge and trade it with discipline over a series of trades
BY "Nial FulleR"
Stop expecting to win on every trade, and you just might become a winning trader
The reasons why so many people have trouble making consistent money in the markets can essentially be boiled down to the fact that they simply expect too much. Most traders try really hard to control all aspects of their trading, whether they realize it or not. In reality, the market cannot be controlled; all you can do is control yourself. But, it’s more difficult to control our own actions and thoughts than it is to over-trade or risk too much on a trade because you’ve convinced yourself that that ‘this’ trade will be a winner. People convince themselves they are right about their trades; it feels good to think we are right, indeed many traders actually become addicted to the feeling of entering a new trade, even though they have long histories of losing in the market.
You have got to learn to look at yourself as the root of your trading problems. It’s not your broker’s fault, it’s not the market’s fault, it’s your fault you are losing money, and you’re probably losing money because you expect to win on every trade and so you largely ignore the risk involved with trading. People tend to focus way too much on the potential reward of a trade and not enough on the risk. However, as we have already discussed, the potential to win or lose on ANY ONE trade is essentially equal. This is because your winners and losers are randomly distributed, you have to remember this. You can assign an overall winning percentage to your trade strategy over a long series of trades, but you can’t assign a winning percentage to any one specific instance of your trading strategy, this is a difficult concept to grasp at first, but it’s very important. it’s up to you to understand the points discussed in today’s lesson. You need to understand them as well as trade in-line with them by not becoming emotionally attached to any one trade and by understanding that you can be a profitable trader if you stick to your trading edge and trade it with discipline over a series of trades
Shared by avny...
Stop Trying To Win
The aim of most traders is long term profitability. However, some trader to understand that many profitable trading systems lose more then they win. Yes, believe it or not, many consistently profitable systems have more losing trades than winning ones even though they are profitable.
so stop trying so very hard to win all the time.
As soon as you stop trying to win, the expectation of winning subsides and when there is nothing to expect from the trade, there is nothing to fear.
instead of focusing on winning or losing, I believe it is more important to aim to trade your system flawlessly i.e. try to perfect your trading edge.
Stop Trying To Win
The aim of most traders is long term profitability. However, some trader to understand that many profitable trading systems lose more then they win. Yes, believe it or not, many consistently profitable systems have more losing trades than winning ones even though they are profitable.
so stop trying so very hard to win all the time.
As soon as you stop trying to win, the expectation of winning subsides and when there is nothing to expect from the trade, there is nothing to fear.
instead of focusing on winning or losing, I believe it is more important to aim to trade your system flawlessly i.e. try to perfect your trading edge.
@Snake.Head MPH green and MPL red. This is 3min tf
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