Think in terms of probabilities "probable inability to be preferred to improbable possibilities"
Aristotle
You have the power when you think categories of probabilities. Probabilities give us opportunities. Without the opportunity we just run the risk of haphazard. And luck would not continue without prejudice to this construct. We must create our own luck. How we do it? We think the probabilities of the categories, and develop approach to analyze and trade in the market, which puts the likelihood of compliance with our trade.
Then, the probability is not certainty. Probabilities, simply, is likely to occur. Yet, should we think the probabilities of the categories. Why? Because, that's all we have.
We could turn to psychics. We could turn to astrology. We could appeal to divine intervention. We could, and some of us do. Our trade is in the hands of fate or God, guesswork, or probabilities. I prefer to probability. Even if they are not always sufficient probable. "Not always is the key word. The models emerge, but not always. Systems work, but not always. Fundamental factors dictate the price, but not always.
Relax. If it was always, the game would be finished. There is no such thing as tomorrow's magazine "Wall Street" today. That is why trade on insider information is a crime. Insider information is predicted, but not always. Even the offense did not give full confidence.
What can we do? Accept the fact that we have. Think categories of probabilities, and act in accordance with them. Permit likely to be sufficient for you. Moreover - Be thankful for them. Probabilities in the end, probably.
Successful traders think the probabilities of the categories. They put themselves in line with the probabilities. They share them. Low probability. It is quite probable. Highly probable. At a high probability of a transaction, they risk more than the low probability trade. This is where the management of their money or to choose the size of the position.
We must accept our limitations and the limitations of our craft and art. We should be comfortable with some predictions and interpretations. We must trust the protection of probabilities. Then we can go with that now exists, and likely to trust the predictability of our techniques.
Successful traders keep themselves out of trouble, thinking types of probabilities. If you know that the transaction is likely to make money, you'll go ahead and run it in an appropriate manner. Why not? It is probably going to make money.
On the other hand, if you know that the trade - this is just the chance, you put a protective stop order. Because this is only likely to remember you about other opportunities. This may be a losing transaction. Therefore, you protect yourself.
Probabilities keep you in a balanced mental state. Reflections categories of probability is the very antithesis of meditation classes undeniable facts. Remember that there are no certainties in trading. Thinking types of probabilities, you hold your perception of sound, to evaluate conflicting indicators or information. Clarity of perception keeps you in touch with this reality. You will not tell a hypnotic tale of what should happen or is going to happen. There is no room for self-deception.
Reflections in the categories of probabilities lets you tie your ego to trade. Because any decision - this is just the probability that there is no great achievement, if you win, and no great failure if you lose. As you kontsentriruetes on the probability, you connect it to the market, rather than a direct. The moment when you begin to consider the market in the relationship with them, you find yourself in trouble. First, you have distorted his vision. You can not see what is right in front of his nose. Secondly, you have biased their assessment. Your trade is too important. When the trade is too important, all kinds of distortions and difficulties increased. You are trading in order to prove their own value, rather than making money.
Probabilities - it is your strength. That's all that you have, but this is enough.
Learning from mistakes
"Trader only rarely makes a mistake. If he makes one, he usually makes the second. The second is destructive."
Adolf Raynshtayn
There is an old saying that it was not a mistake he who does nothing. And this is true. Errors inherent in the implementation of something, and, of course, are an essential part of studying the implementation of any process. You learn to walk, not falling? Ride a bike for the first time, did not hesitate? Of course not. Also, you can not learn to deal effectively, not making mistakes.
It is important to learn from their mistakes when trading, when they occur. You make a mistake, and then you make adjustments. Perhaps you've done wrong and need to make adjustments to re-adjust.
I take the error as a feedback. Any action produces results. Since the trade - this is a series of perceptions, thoughts and actions, we get continuous feedback. Our results speak to us through a period of time, working or not what we do. We must keep open its view that imprisoned their skills.
Some traders are so afraid to commit an error that did not sell the relevant situation way. And this is one of the worst mistakes that can make a trader.
Other so ashamed of errors that can not recognize them. If you can not admit a mistake or do not take responsibility for the failed operation, you can not learn from this mistake. This leaves you vulnerable to repeat exactly the same error.
Ultimately, what distinguishes winners from losers - the ability to learn from the mistakes and the discipline to stop repeating them. Already more than once stated that, an amateur from a professional experienced distinguishes fact that a professional, just make fewer mistakes.
And how do we do less mistakes? We recognize and acknowledge mistakes when they occur. We practice, going forward, without repeating the same mistake again.
According to Roy B. Longstrit:
"Let us not make the first error. But if we do it, let's avoid making the second exactly the same mistake. The first can teach us. But the second is killing us."
Learn trading
"Our greatest achievement is not to never fall, but to get up every time we fall."
Confucius
You learn from their mistakes in the trade? If not, you pay too high a price for them. One of the costs if you do not learn, is that you repeat the same mistake many times. Another cost is that you learner errors, and makes them part of your personal trading. You can even begin to consider themselves as losers.
Not every loss is a mistake, and not every error is a loss. We must make a distinction between loss and profit and a mistake and a mistake. The losses are natural in the framework of trade experience, and profit. We just accept it and move on. Every trader makes mistakes from time to time, but not every trader to identify them, and not every trader is learning to them.
For the discriminating trader error is recognizable. You have made a simple mistake, such as purchasing, when wanted to sell, or have forgotten to cancel a stop-order, when the came out of the market? In this case, your training must concentrate and pay attention to its procedures for testing or other protective measures.
You may load position. Then, you must develop some basic principles in order to adapt the size of the positions. You may have incorrectly interpreted signals. Study on this. Perhaps your system does not work on certain types of markets. Develop a new rule for cases where you will be using this specific method. Perhaps you made a deal, is the momentum when reading someone's advice or listen to your broker. Install a set of probabilities, only that you'll follow.
Pay attention to the difference between the new study and a simple reaction. A simple reaction to the latest deal throw the probability in your trade. For example, if you took profits when the market had reached your goal, but the price has gone further by your goal, then you will be tempted to allow the next transaction to go. However, in the next transaction price can only achieve the objectives and turn back to the loss. What you need is to be always consistent, closing the position when you reach the goal of profit, or always allow the price to rise until the market closes you. The study is not a simple reaction.
When the sale does not go as you planned, very often there is one way to make your trading better. Constantly ask yourself, "What can I learn in this situation?" It is possible to learn from success - ask yourself, "what I did that so well?"
To learn from the mistakes that you should be willing to accept them. More easily recognize the mistake, when you stick to the relationship that mistakes are acceptable and a natural part of the study and development process. For the benefit of improvement, do not expect that you will be perfect. Let yourself explore the process through trial and error.
Look for each error. Once you've made the lesson from the mistakes keep this lesson and go forward. Leave this mistake in the past. How do you do? You forgive yourself.
Good and bad ideas
"What was once thought, it is impossible not to think."
Friedrich Durenmatt
What are the thoughts you attend at a time when you sell?
If you say to yourself, "just could not lose, you can cause a loss or at least miss the opportunity. Remember, trade - that capture the opportunities and take losses, even when you keep them small.
If you say to yourself, "I can do a lot of money here, you will probably overload the position and will likely finish with big losses, too, in accordance with the principles of managing your money.
You tell me about a specific market-based instruments - it should go down because of something and that something, it should rise because it is so. These thoughts, and affect your views and encourage them in some way.
You say, "I do not believe this!" If you do not believe you detracts from the fact that you clearly see and what happens in reality. This approval is valid as no red flag saying to you, where you could go wrong.
You ask yourself, "What if I'm wrong?" This brings your imagination to the consequences of being wrong. When you start to feel defeated before you even started to sell, you'll be inclined to skip the transaction, and will feel terrible, when it later proves profitable.
You volnuetes about the fact that your boss will think, broker friend or family member, if you lose? Such thoughts may make you hesitate at the entrance to the market or fixed income too quickly.
The ideas are good and bad, are a powerful force. They affect your perception, your interpretation of the situation and, of course, your actions. You must control your thoughts.
You can do so at the end of the trading day, when you look at the deal. What do you think, when entered into the transaction or were unable to enter into this or that transaction. What do you think, when he lifted the stop-order, double position, or had withdrawn from the market. What would you like to think in such situations tomorrow?
It is best if you can catch yourself when you are about something to think that would deter you from your best trading position. And you can completely change it on the spot. If you hear a remark, "What if I lose?" Change it immediately to the "what if this transaction will bring me more profit?" If you hear a phrase, "the market should turn." Revising it to "the market has shown me now?" or "what is the probability in this situation?"
Who manages your opinion? You. And you can learn to manage their opinions to support their trade.
Winners and Losers
"Winners and losers themselves determine. But only the winners are ready to admit it."
John Vuden
Trade - a victory. It is sort of consistent victories over time. This is like a slowly rising curve of increasing capital.
Trade - is also a loss. As a trader, you must accept the inevitability of loss. When you have a psychological victory for the installation, you are considering trading losses, as a minor and a natural part of the game. Some losses to trade no more important than the loss of a few points to your opponent in tennis or basketball. Even a long period of decline, as a wake-up call, can be considered as a temporary situation. You can be the winner even when you're a loser.
Adoption of the losses is an integral part of trade. Traders who seek to avoid losses, finishing up losing. Or they miss the deal, being unable to click on the "trigger" or they will lose because they refuse to recognize a losing situation where they are in it and they will not be able to reduce their losses, while not received great damage.
Losses happen. I have. You. Do the best traders. It's a simple reality of our business. This is the price of this business and it should be taken into account in the shopping budget. This is like the rent or the cost of equipment trader.
Chronic loss, however, are not part of a winning game plan! Ask yourself, "whether I am a net winner or, still, I am a net loser, since I started to trade?" As you walked in the case last year? How did they go this year?
If you were a loser, you should analyze the cause of the loss. Is this happening because of bad strategy? Does your entry into the market of a problem or your exits are an obstacle? Or both? Maybe the problem is managing your money? Or the problem is lack of capital? This is your personal identity or psychiatric unit, which leads to repeated losses?
If you lose, sit down before you continue to sell and make analysis that does not work. You should stop doing what does not work. Try to see what works and do more than just that. Check what might work.
Requires courage to face the facts. Be a winner, taking responsibility for the weakness of their trade. Find a teacher or a tutor if you need it. Remember the words of John Vudena - "Winners and losers themselves determine. But only the winners are ready to admit it." What happens if you can learn to think and act like a winner?
The ratio of the successful trader
In his work with traders, I have noticed that there are certain attitudes, certain attitudes, certain habits of thinking that are the norm among successful traders. Typically, this relationship is not perception, is not something that traders from all the forces are trying to achieve, although the traders are really working on learning. Mainly, I learned that successful traders naturally form an opinion about trade.
Successful traders come to trade with a benevolent spirit. Their relevance to the key aspects of trade work for them. And if it does not work, they change it. Their winning mental approach is so consistently maintained that it becomes a normal model of thinking and acting.
When attitude becomes a habit, we can call this a normal attitude. The attitude that has become routine, and then becomes natural.
For most traders, but such preferential treatment does not come by themselves. They need to explore, develop and maintain, yet they do not become routine. In his new book recently published "12 habits of very successful traders, I explore the effective treatment of trade and shows how changes in the relationship increases every other relationship. I identify ways to develop these habits.
What habits for a successful trade? I chose the twelve.
First. A successful trader is willing to trade. The methods tested. Home work is finished. Precautions taken, and all checked. Trader himself mentally and emotionally ready to trade.
Second. A successful trader away from the results. He thinks the category and believes in the validity of the process. He realizes that he himself more than his trade. It does not bind his fragile ego with the results of any day or any transaction.
Third. A successful trader is willing to take the loss. She understands that a loss - it is an integral part of the trade process. He does not like losing. He does not expect losses. It just takes a loss as costs for maintaining the business.
Fourth. A successful trader naturally manages risk. He is taking a risk. He was willing to take risks to win. He may even find the risk of stimulant. This keeps it in the tone and at the top of their game.
Fifth. A successful trader thinks the probabilities of the categories. While he may have some prejudice in his life when he begins to trade, he understands that did not know anything for sure. All that he has - it is probable. And the probability is more than enough.
Sixth. A successful trader feels comfortable in the face of uncertainty. He understands that the future is not known, and accepts the fact that he has only probability, and no certainties. He has no needs to be right. He understands that the desire to be right or there is no perfect place to trade. Therefore, it is flexible.
Seventh. A successful trader has a long-term perspective. He was willing to lose in the short term. Recession seen as temporary. He remains optimistic about the future, while it maintains a realistic attitude to the present.
Eighth. A successful trader has the attitude of abundance. The deficit has nothing to do with his attitude. He sees the market as the river of opportunity. He understands that the market does not care about the ocean, you will come to him with a bucket or a tea spoon. He knows that will always be able to recover from any downtime. He expects and creates a lot of wealth and opportunity.
Ninth. A successful trader is an optimist. He is realistic and honest here. He is optimistic about its future trading. His optimism gives him confidence and courage. It supports it, to avoid becoming a victim of fear and other emotions.
Tenth. A successful trader has impartially relevance and clarity of thought and perception. He wants to listen to the market and is sensitive to the changing whims of the market. It is this attitude that anything can happen, and he will be able to act in accordance with what actually happens.
Eleventh. A successful trader is brave. He is willing to act in the face of uncertainty and potential losses. This does not mean that he knows no fear. He feels the fear and act anyway. He has a healthy attitude to the market, and he balances on this regard with a certain courage.
Twelfth. A successful trader disciplined. Discipline gives effect to those things which should be made to move him to his goals - regardless of whether or not he feels this way. He does what he intends to do. His actions support its objectives. His goal is to make money from the sale. He is doing what must be to win and he does it the right way and at the right time.
If any of these familiar patterns of thinking is missing in your approach to trade, then you can degrade your results. Your thoughts are your strength and you can change your thinking.
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