- 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.
- Build the self-trust necessary to operate in an unlimited environment.
- Learn to flawlessly execute a trading system.
- Train your mind to think in probabilities (the 5 fundamental truths).
- Create a strong, unshakable belief in your consistency as a trader.
Principles of Consistency
- I objectively identify my edges.
- I predefine the risk of every trade.
- I completely accept 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.
The above is extracted from the book , Trading in the Zone by Mark Douglas.