One thing everyone who trades the markets will come to realize at some point in their trading career is that at any given time the market can and will do anything!
As traders we have spent time studying the markets and have grown fond of the lessons price action has taught us. We use events of the past to anticipate high probability actions of the future. But the hard reality is that the market is the only one that truly knows what the market is going to do.
In the market there are buyers and sellers.Buyers will move an asset higher, while sellers will move an asset lower.
Since there are human participants in the market we use the tools of technical chart analysis, our trade plans and the 7 pillars of success.
But in the end profitability of you the trader comes down to your basic beliefs about what the market will do.
When the market is moving up there are more traders with a belief of the market moving higher then there are traders believing the markets are moving lower.
It is that Simple!
To keep trading profitably we must exhibit solid trading beliefs in ourselves and in our trading system.
Here are three traits we must incorporate into our belief systems to have consistent success.
1) We must pre-define the risk before entering any trade. We must be able to quantify the “what if i am wrong” question. It is always the trader that is wrong and never the market itself.
2) Listen to the market. It WILL answer your question. Don’t ignore what the market is telling you. Cheetah traders will cut there loses without hesitation or reservation when the market goes against them.
3) Cheetah traders have a systematic and organized system for taking profits. When entering a trade a successful trader will access the risk in a trade, enter a trade on a systematic risk-reward ratio and exit (without hesitation or reservation) when a profit target is achieved.
Expect the unexpected , knowing the risk/reward payoff and taking the trades that the market gives you is the best , most consistent way to succeed in the market.
Trading the markets is a marathon and not a sprint.
You will hit some home-runs, but only if you apply a consistent and systematic approach to your trading.
We all believe in something so instill this belief…
Believe that the market is always correct and when you are wrong the market is not branding you as a failure, merely proving you with feedback to make you an even better trader!