Trading ... Trader ... AND I ...

Being Consistent ... Being Constant ... in Life and the Market ...
Being Constant is not to be confused with "consistency". Consistency is necessary when trading, however, when I use the word "constants", I am referring to the opposite of "variables". Please allow me to explain. Occasionally while driving in town, you might have an animal run out in front of you. I've found through the years that if you start swerving from left to right in an attempt to miss the animal and at the same time the animal begins to run left and right in order to miss you, you will invariably run over it. Why? You have two variables trying to dodge each other and neither one knows where the other is going. However, if you make it a practice to slow down and continue to drive straight, the animal will dodge your tires and run to safety. What you did was become a "constant" to allow the animal to dodge you. This may be a bad illustration, but the world of trading works the same way. Since the market moves as without any certain rhyme or reason, WE must become the "constant" because the market (price) is certainly without question, the variable. So rather than chase an unpredictable set of time and events, we wait (as a constant) planning our strategy around this unpredictability.
Be Predictive against THE UNPREDICTABLE ...
Be Constant against the Ever Changing ... Change is the only CONSTANCE in life and market ...
Stay in Green ...

"anticipate and participate" ...
"Anticipating and Predicting" ...
hmm... do not these words have similar meaning? one may ask. the answer is no.

There are lots of signal services, newsletters, and trading rooms offering predictions for the coming days, weeks and months ahead on what the market is going to do. It's a very tempting proposition to give subscribers a peace of mind on what the market is about to happen. Some believe it is possible to see what the market will do and subscribers do follow these services. Unfortunately, predictions don't exist even if these advisors are seers. No one can make the correct predictions even 50% of the time consistently, market is either goes up or goes down.
When traders anticipate what the market will do, is it the same as prediction? Prediction is declaring something will happen exactly in the future with only one outcome while anticipation is to give thought in advance to all possible outcomes. Anticipation requires dealing with problems before they arrive; prediction is expecting something to happen without dealing with. Prediction tends to take a bias or position while anticipate requires careful thought of what might happen: good or bad.
An example of the anticipation is when the trader is watching the prices rising and approaching an old resistance level. He anticipates that the prices may either continue or reverse. He has to make preparations to deal with both scenarios. One is to prepare for the breakout and continue to the upside, he has to determine at which price he will go long and where the stop loss will be place. If the prices reverse, he has to determine where the short entry will be as well as the stop loss. These scenarios prepare him for the next price movements, anticipating what other traders will do when the prices get to the resistance level. If he predicts what prices will do, say, has been going up and continue to go up. He has no plans for the possible reversal. He is focused only on the uptrend move and no on the possible reversal or the consolidation. These scenarios must be constantly considered and planned as the markets continually evolve. This mentality makes a tremendous difference between a successful trader and a losing trader.
Predicting is a loser's game, feeding the need to be right instead of the need to make money. The ego many times is the culprit to show off to other traders how good he is at predicting the market direction. In trading, ego and profitability cannot co-exist. If it's not ego, most traders will look for one direction and then use evidence to support that bias ignoring the evidence that may support the opposite direction. This bias is predicting the future. It tends to carry the mindset until after the trade is made. It may be a profitable trade, but eventually the trader is so convinced of this bias that when trade fails, he'll have no alternative in preparing for the loss.
One of the desired traits of a successful trader is his ability to prepare of all possible outcomes, imagining the scenarios the market may do, up or down, before the trade is made. He knows he cannot predict but he can calculate the probabilities of the market going one way or another. In anticipating the outcome, he has a plan for one outcome or another. What happens if the market goes against his position, where will he exit? What happens if the market goes in favor of his position, where should he exit to take profit?
Anticipating is preparation for both outcomes, good or bad. Calculating how much to lose just as important as how much to expect to win. This means the trader will identify in the chart where he'll see the entry point and two exit points (stop loss and profit target). By having this method, he can identify his risk-to-reward ratio as well as the probability of the success of the trade.
So how do we overcome this dilemma? Probabilities can be made found through rigorous testing historical data based on strategies that the trader plans to trade with them. Finding statistics to back his notion that the strategy works will give him confidence in approaching the market and give the mindset to anticipate and not predict the outcomes. One way is the see the market as it is showing us either by the price action or by indicator.
Recognize that prices or indicator can change direction at anytime. By using statistics to make an educated guess, the trader can find which direction the market will likely go. But probability cannot guarantee the desired outcome. This means a backup plan must be in place, i.e. a stop loss, in case that desired outcome doesn't happen. This is the reason why successful traders have stop loss in place. A stop loss is a deciding factor that determines if the outcome has worked or not.
The trader must accept that the market will always be right and trying to be right will prevent the trader from being one with the market and go with the flow.

You get up in the morning, shower, breakfast, put your office attire, drive your car on the Right or Left side of the road. Stop at junction, red light, slow down on many traffic, speed up on highway...........and you just follow the flow.........until become second nature to you........

Trading isn't any different, no aspect of life is. There are basic rules, a "flow" to learn to become accustomed to, a rhythm to follow and the result .......... you become one flow with the market!,


We are not in control of the markets, We are only in control over our emotions.

What is Trading?

This is what I can think off.

1. What goes up must come down. (Gravity)

2. For every action there is an opposite and equal reaction. (Median Lines)

3. Life follows predictable patterns. (Elliot Waves)

4. It takes a lot of energy for a trend to turn. (Inertia)

5. There is a rise and fall to all Price Action. (Sleep cycles/ Circadian Rhythms)
6. Everything is built on smaller things. (Fractal Science/ Geometry, etc.)


The above is actually LAW of Universe.............

Now ... think what is trading? Is not Trading as simple as life, if we keep it simple?

I hope it was that simple. Sideways kills. May be with time, I can separate siedways.

When market becomes sideways / Ranging ... First observe the range in terms of points ... If its very small / narrow range ... Skit ... enjoy family time ...
If the range is big, trade from top to bottom and bottom to top ...
The Biggest Psychological Challenge in Trading is ... NOT to trade every tick, every candle, every session ... EVERYDAY ...
We are never late in the market ... Always early ... Thts the problem ...

Many say it's not possible to achieve returns of more than a few percent per month, yet there are many who do much more than a 2% return per day pretty consistently.

These sort of returns are possible and possible consistently.

It all just takes a bit of time to allow you to gain a “feel” for your trading style.

To be honest, it all comes down to belief.

You either believe you can and start working to accomplish it, or believe you can't and never even try.

The issue is more psychological than practical.

I belong to those who choose to believe something is possible, and usually achieve it.

My income is primarily determined by my philosophy and not by the economy. As my perception dictates my behaviors, so thus my philosophy will dictate my performances and results. It is crucial to have, to know and understand my own trading philosophy. It is very important to know myself.
Understand that if I am not succeeding in trading, then I need to change my philosophy. I cannot continue to do the same thing over and over again expecting to get a different result. If I want to change my results (always losing), my philosophy has to change.
Explanation:
The fundamental of all human psychology: "Perception dictates Behavior". If you perceive your environment to be threatening, you will act accordingly. However you perceive an object, you will act according to your perception.
Here is an example:
Imagine that you are very hungry. Now, picture a roast chicken in front of you. Would you eat it? --- yes or no --- it'll depend of your perception of the roast chicken.
You see, more likely you would eat the chicken because your perception is non-threatening. What if I told you that the roast chicken is poisonous,... would you still eat it? (of course not!)
I've changed your perception and you've changed your behavior instantly. Yet, there is no objective proof that the roast chicken is poisonous. You are simply acting from your perception that the roast is poisonous.
Your behavior of trading is a reflection of the underlying perception you have about trading. Whether you are aware of these perceptions or not. The negative result speaks for themselves. Your perception is the philosophy running in the back of your mind, quietly and unnoticed.
Your perception will dictate your behavior. Thus, your philosophy will dictate your performances and results. If you want to change your results, you have to change your philosophy. You need to possess a solid trading philosophy.
"Money will take you wherever you want to, but it does not change the fact that YOU ARE THE DRIVER" - Ayn Rand
In the same way, Trading is not about the terminal, contract notes, trend, Indicators etc.
Trading is about the Psyche of the trader.
PERIOD