A shift in thinking....
- As a trader, you are effectively running your own casino.
- As a casino, you only deal in games which have a built in statistical advantage.
- Trading records determine which method/game/pattern/etc provide you with a statistical advantage. These can be a combination of real and/or simulated trading outcomes over a large sample base
- Not adhering to stops, adding to losers, chasing the market etc removes your statistical edge and hands it over to the market over a large sample base
Overcoming "lack of discipline" comes down to only one or a combination of three things:
- not knowing you have a statistical edge over a large sample base
- thinking you know what the market is likely to do
- risking more on a trade than you are psychologically comfortable with
Suggestions for a shift in thinking
Pages 57 to 183 of Trading in the Zone by Mark Douglas
Videos: Mark Douglas - Mind Over Markets
