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.
I started my trading journey back 1999 and made more money in a year than I’ve seen in a lifetime. Unfortunately, I lost it all within the next year when the market turned down. It didn’t take long to realize I didn’t know what I was doing and the only reason I made it as […]