Trading In The Zone

Strategies

Consistency is a function of a care-free objective state of mind where we are making ourselves available to perceive and act upon whatever the market is offering us from it’s perspective at any given now moment.

  • Carefree – meaning fearless
  • Objective – I trust myself to act in my self interest without any reservations, hesitations or internal conflicts under all circumstances
  • No potential to associate this now moment with anything in our rational mind as a memory
  • No potential to define or interpret market information in a threatening way

7 Principals Of Consistency

I am a consistently successful trader because

  1. I objectively identify my edges.
  2. I predefine the risk of every trade.
  3. I completely accept the risk or I am willing to let go of the trade.
  4. I act on my edges without reservation or hesitation.
  5. I pay myself as the market makes money available to me.
  6. I continually monitor my susceptibility for making errors.
  7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.”

Being Objective – Thinking In Probabilities (Fundamental Truths)

  1. Anything can happen.
  2. You don’t need to know what is going to happen next in order to make money.
  3. There is a random distribution between wins and losses for any given set of variables that define an edge.
  4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
  5. Every moment in the market is unique.

Excerpt From: Mark Douglas. “Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude.” Apple Books.

Trading Mechanically

  • The variables that define your edge are present or not
  • Trade in sample sizes (20-25 sample sizes)

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