Mark Douglas Quotes || Trading Psychology

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There are only a few traders who have come to the realization that they alone are completely responsible for the outcome of their actions. Even fewer are those who have accepted the psychological implications of that realization and know what to do about it.

step through your fears of being wrong, losing money, missing out, and leaving money on the table (so you can stop making errors and start trusting yourself), then you’ll know exactly what you need to do.

If your purpose is to think objectively, disrupt the association process (so you can stay in the “now moment opportunity flow”);

The best traders have evolved to the point where they believe, without a shred of doubt or internal conflict, that “anything can happen.

The fear of admitting we are wrong causes us to place an inordinate amount of significance on information that tells us that we’re right.

I have found that a sample size of at least 20 trades fulfills both of these requirements.

Your sample size has to be large enough to give your variables a fair and adequate test, but at the same time small enough so that if their effectiveness diminishes, you can detect it before you lose an inordinate amount of money.

If your edge and the way you scale out of your trades give you a 3:1 risk-to-reward ratio, your winning trade percentage can be less than 50 percent and you will still make money consistently.

Your risk-to-reward ratio should be at least 3:1, which means you are only risking one dollar for every three dollars of profit potential.

With the perspective of making yourself available, you know that your edge places the odds of success in your favour, but, at the same time, you completely accept the fact that you don’t know the outcome of any particular trade.

A trending market is a distinction about the market’s behaviour we can ordinarily perceive, but this distinction can easily become invisible if we are operating out of fear.

Making yourself available” is a perspective from which you understand that the framework from which you are perceiving information is limited relative to what’s being offered. Our minds don’t automatically perceive every opportunity that presents itself in any given moment.

Beliefs can be changed, and if it’s possible to change one belief, then it’s possible to change any belief, if you understand that you really aren’t changing them, but are only transferring energy from one concept to another.

Developing and maintaining a state of mind that perceives the opportunity flow of the market, without the threat of pain or the problems caused by overconfidence, will require that you take conscious control of the association process.

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If you’re going to establish a belief in yourself that you’re a consistent winner, then you will have to create experiences that correspond with that belief.

If what you perceive at any given moment causes you to feel fear, ask yourself this question: Is the information inherently threatening, or are you simply experiencing the effect of your own state of mind reflected back to you.

Because the object of the belief is winning consistently, how you take profits in a winning trade is of paramount importance.