ONE: What Trading Really Is
When we trade properly we need to know that we are using the law of probabilities.
When you go to any gambling place you are playing with probabilities. The thing you already know is that the probabilities are in the favor of the house. When you use a trading system you are putting the advantage in your favor.
For example you have moving averages, oscillator signals, conformations, trends, time frames to put the advantage in your favor. If one indicator gives you a signal then you wait for the confirmation of the other indicator to give you another signal to enter the market. A trading system helps you identify high probability trades.
Some trading systems are better than others. Don’t get caught up in trying to find the perfect trading system. You know the “Holy Grail” the system that is right all the time and is never wrong. Find a trading system that is simple to use, one that you like and feel comfortable with and then stick to it and be consistent.
A trader that follows the rules of a trading system will most likely make money using it. A trader that does not follow the rules will probably lose money.
We all have good days in our trading and we all have bad days. If you follow the rules you will have some big days, which will make up for some of the days you have some losses. That’s how traders make money in the markets. Trading is not an 8-hour a day job.
You never know when the big trade is going to hit. If you say I will let this one go then you will miss some of the big trades and give you a misconception of the trading. Realize that the current trade is only one of many. There is no one trade that really matters. It is like a peace of dust in a windstorm.
Trading is all about managing risk and then surrendering yourself to the oldest law in the Universe: the law of probabilities.
Tagged With Emotion, Forex market, forex strategy, forex tips, Forex trading, Trading smart, Trading system, Trading Tips
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