- The successful state of mind of high probability traders
- The integration of the successful mind set with the high probability trading rules
Today, I'll go through the first topic about the mind set and winning altitude. High probability means a good chance of success over a large amount of events statistically, but it does not guarantee success for any specific and single event during the process. So successful traders must have the following carefree state of mind to accept the uncertainty of each individual trade.
- Any outcome is possible after a specific trading action is taken.
- Market can give us a win or a loss at each time randomly.
- Market is unique every day without any exact association with its past.
- The high probability rules provide a higher probability only and guarantee overall successes statistically.
- There is no need to know market's next move to make profits. We must know what we will do next, based on any possible market moves.
To achieve success consistently in high probability trading, we must integrate the following actions with our trading process.
- Pre-define risks of every trades
- Completely accept the risk or take action to eliminate non-tolerant risk
- Objectively identify trading opportunities
- Execute trading rules for each opportunity without reservation and hesitation
- Reward ourselves as market gives a win for us
- Keep monitor trading processes and susceptibility for making errors