I don’t follow the general market too much anymore, I find it just confuses me and has a tendency to influence my trading. However, I did take a look at a chart of the SPY the other day and the next thing I knew I was drawing trendlines on it – some habits die hard. […]
Mark Douglas’ book Trading in the Zone is an exhaustive examination of the trials that we face when we take up the challenge of becoming a successful trader. To the novice, the only concern appears to be to find a way to make money. Once reality sets in and this neophyte starts to understand the hard […]
It’s just a Game of Probabilities Successful trading is learning that this business has nothing to do with being right or wrong on any given trade. The best traders may have just as much negative emotional baggage as unsuccessful traders. But as long as they legitimately define trading as a probabilities game, their emotional response […]
Mark Douglas’ excellent book, Trading in the Zone explores the five fundamental truths in trading. Five Fundamental Truths in Trading To think in probabilities, you have to create a mental framework or mindset that is consistent with the underlying principles of probabilities. A mindset that understands probabilities believes: Anything can happen. You don’t need to know […]
In my Blog article called “5 Fundamental Truths in Trading“, we introduced the 5 Fundamental Truths in Trading from Mark Douglas’ excellent book, Trading in the Zone, and now we are going to expand on each of them. Anything Can Happen … on any given trade. There are always unknown forces operating in the market […]
Trading distilled down to its simplest form is a pattern recognition numbers game. We use analysis to identify patterns, define risk and determine profit targets and the trade works or it doesn’t. In either case we go on to the next trade. This is simple to comprehend yet extremely difficult to do. In fact, trading is probably the hardest thing you’ll ever attempt.