Mark Douglas, one of the greatest authors of trading psychology tried to stress to traders in order to help them achieve consistent profitability. He wrote the book which is famous among the trading community “Trading in the Zone”. We can all learn something from Mark – he has dedicated his life to help people mentally and emotionally with their trading.
The best traders, according to Mark Douglas, think differently than others because they know that what is most important is “how they think about what they do and how they’re thinking when they do it.”
One of his famous saying about Market Edge,
“There is a random distribution between wins and losses for any given set of variables that define an edge. In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. what you don’t know is the sequence of wins and losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. when you really believe that trading is simply a probability game, concepts like ‘right’ and ‘wrong’ or ‘win’ and ‘lose’ no longer have the same significance. As a result, your expectations will be in harmony with the possibilities.”
I just had this golden words in front of my trading desk. That brings me greater confidence in my trading and leads to superior results in my trading performance. One of the most admirable person and true legend when comes to trading psychology!