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
- I objectively identify my edges.
- I predefine the risk of every trade.
- I completely accept the risk or I am willing to let go of the trade.
- I act on my edges without reservation or hesitation.
- I pay myself as the market makes money available to me.
- I continually monitor my susceptibility for making errors.
- I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.”
Being Objective – Thinking In Probabilities (Fundamental Truths)
- Anything can happen.
- You don’t need to know what is going to happen next in order to make money.
- There is a random distribution between wins and losses for any given set of variables that define an edge.
- An edge is nothing more than an indication of a higher probability of one thing happening over another.
- 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.
- The variables that define your edge are present or not
- Trade in sample sizes (20-25 sample sizes)