The majority of people believe they are playing against the market, but the market is unconcerned. You’re essentially competing with yourself. We don’t lose to the markets, we lose to ourselves. Our ability to follow price action with discipline while managing risk is what makes us successful. In the short term, price action and certain environments may beat us, but trading a reliable system will pay off in the long run.
Trading is essentially about two things: Making the right decisions and Making the wrong ones.
Betting Too Large Is Nor Real Trading
Trading too large is what breaks many new traders, not the market price action. Regardless of your method, if you trade too large of position sizes, you will lose eventually. Your first long string of losses will also be your last.
Trading On Opinions Can Make You Looser
The market will beat you if you trade solely on opinions. it is a strange machine that goes higher when it should reverse, reversing when it should crash, and zigging when everyone is betting on zag. Trading based on historical price action gives you a competitive advantage, whereas trading based on your personal opinion puts you at a disadvantage.
Stop Blaming Others
Blaming or fighting central bank intervention in the markets is a losing game; if you trade price action, you’ll be trading the market’s overall trending beliefs, no guessing, no hoping, just following.
Our Decision Our Choices
We choose our entries, exits, watch list, and position sizes; we have complete control over our actions, regardless of market conditions. If we’re being gamed, we should look at what gamers do in terms of trading and join them.
If we’re gamblers and the house is winning, it’s time to trade like the house. We can even make a winning system by inverting a losing one. There are no excuses for us if we want to win; all we have to do is learn what the winners do and follow in their footsteps. All of our trading is dependent on our ability to make the right decisions.
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