When we trade properly we need to know that we are using the law of probabilities.
When you go to any gambling place you are playing with probabilities. The thing you
already know is that the probabilities are in the favor of the house. If you think
about it they have a license to print money. When you use a trading system you are
putting the advantage in your favor.
For example you have moving averages, oscillators signals, conformations, trends, time
frames to put the advantage in your favor. If one indicator gives you a signal then you
wait for the confirmation of the other indicator to give you another signal to enter the
market. A trading system helps you identify high probability trades.
Some trading systems are better than others. Don’t get caught up in trying to find the
perfect trading system. You know the “Holy Grail” the system that is right all the time
and is never wrong. Find a trading system that is simple to use, a trading system that
you like and feel comfortable with. Stick to it and be consistent.
A trader that follows the rules of a trading system will most likely make money using it.
A trader that does not follow the rules will probably lose money.
We all have good days in our trading and we all have bad days. If you follow the rules you
will have some big days, which will make up for some of the days you have some losses.
That’s how traders make money in the markets. Trading is not a job where you punch in
and leave 8-hours later. It may only take a couple of hours one day the next day you spend
many hours and don't make much money and you put in a lot of effort.
You never know when the big trade is going to hit. If you say I will let this one go then
you will miss some of the big trades and give you a misconception of trading. Realize that
the current trade is only one of many. There is no one trade that really matters. It is
like a peace of dust in a windstorm.
Trading is all about taking all signals controlling the size of each trade then managing the
wins and losses. Being a mechanical trader will put the advantage in your favor.