It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance
Of all the quotes both in Reminiscences of a Stock Operator and his own How to Trade Stocks, this quote is one of my favourites.
It kept me going throughout all those dark years of being a losing trader.
I grasped what he meant, but it was 8 years before I could shed my ignorance.
I haven’t made my millions trading yet, but I can attest to the fact trading is no longer difficult.
I read here on Babypips, what is the secret to trading? Or what is the one thing that improved your trading?
For me, it’s something I took from a Mark Douglas book, not sure which one though.
And it is to think in probabilities.
It’s that simple, especially if you’re a system trader.
Thinking in probabilities sums up the essence of trading.
I no longer care (so much) if a trade wins or not.
I don’t like losing money as much as the next man, but like the number ten bus, there’s another winning trade on its way soon.
I’ve done my backtesting, I know my system works. I have done the psychological work too.
All the hard work is complete.
It seems a lot on this forum seem to care which way the market’s headed. They’re either a bull or bear.
I am neither. It keeps my mind clear.
It’s a lot of hard work figuring out where the market is headed. I know I have tried. Sometimes I am even right. But these days I just let the market lead me and I follow.
Every time I respond to a thread about market direction I soon regret it.
I am humble enough now to realise I have no clue. New traders take note, you don’t have to know where the market is going to make money.
I simply react to the probabilities.
I think the reason why so many fail in trading is that as humans we crave certainty. We add more lines to our charts, go in trading chatrooms hoping others will confirm our opinion.
Seek out analysts who supposedly know more than we do.
All to add to our certainty.
But there is no certainty in trading. Just probabilities. As soon as you figure that out, the sooner you will be profitable.
My advice (if anyone wants to hear it) is to embrace the uncertainty and stop trying to find the infallible system or guru that eases your fear of losing.