Invaluable Mantra for EVERY Trader

I'm sure many of you have read 'Trading in the Zone' by Mark Douglas and if you haven't you most certainly should.

In it he offers us '5 Fundamental Truths of Trading' which I have printed out and have above my computer so that every morning when I sit down to start trading I can try to get myself 'in the zone'.

I find it helps my focus greatly and thought I'd post it here for anybody else that may need to focus themselves before trading.

Hope you find it as useful as I do.

Good luck

Lux

Thanks for sharing this with us!

Do you have the e-book too? I havent read it.If you have,could u please attach it here? thx bw

This reminds me of a guy who used these three phrases back in Soviet Russia back in the 70s when he believed that government snitches tried to strike up a conversation with him to see if they can get him to talk about his political views:

1. Anything can happen
2. They do what they want
3. nobody knows anything

he would just repeat them in various combinations in response to any question or comment. It was hilarious.

ok, lets go over it...


1. Anything can happen.

right...

2. You don’t need to know what is going to happen next in order to make money.

since you cant know what is going to happen...everbody had to make money under condition of uncertainty..without exeption

3. There is a random distribution between wins and losses for any given set of variables that define an edge.

hhhmmm...i would say, theres some micro-randomnes inside an overall orderly variation of distribution of winners and losers (sample not too small)...

4. An edge is nothing more than an indication of a higher probability of one thing happening over another.

an "edge" is something different in my eyes...

5. Every moment in the market is unique.

yes and no...

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I read that book ,it's a must read for anyone who ants to be a sucessfull trader.

Agreed - a must read for any trader. After reading this book my trading style improved for the better.

If your serious about trading then buy the book.

Yep, everyone should read this book.

Even if you're already making consistent profits. It's that good. Focus is it's theme, focus with reason.

5 is not true, otherwise their would be no such thing as an 'edge' (queue tdion?).

I wouldnt say that but its a meaningless assertion.Its like saying that, "I'm older than I was 10 seconds ago".

can you share that book here? I'd love to read it too.

will be appreciated

It's a must read.

And after you read it. Read it again. It's layered.

http://www.amazon.com/Trading-Zone-C...1264216&sr=8-1

Here we go, "Trading in the zone" in pdf

The idea of this truth is to make the trader understand that just because a certain scenario appears the same, or similar, as one that occurred previously - it is not the same and is therefore not predictive of what is going to happen next. If the trader really understands this idea he/she is able to have no opinion or bias about market direction under any circumstances. Having no opinion, or at least being able to put it aside, Helps the trader to remain disciplined to his/her rules and trade according to his/her plan, not beliefs. If you have rules that are profitable, then you will also know the consequences of deviating from the plan because you think you Know better. This is nothing other than lack of discipline and why most fail

A "bump" for better exposure . . .

After past a year......... Bump