Trading is a Probabilities & Numbers Game

JoshWinter
JoshWinter

It took me a while to figure this out on my never ending trading journey. But it finally sunk in and all clicked for me. I removed myself, my ego, and my opinions and instead focused on my technical edge and the probabilities. I now put on many small trades across many different asset classes, with small risk and big reward. I do not know which trades are going to be full stop outs or which trades are going to hit their big targets. And by keeping my risk small on each trade around 1% of total capital or less, it does not hurt my ego or bother me at all when I take losses. Even if I take many stop losses in a row or have a streak of losers. I stay focused on the probabilities and know if I follow my strategy, rules, and edge, then no matter what over time I will be profitable and make money. I believe this process takes time and experience. The more experience and trust you get in yourself and your edge the more your confidence improves and that carriers over into your trading. And there is no substitute for experience and that is one thing that no educator or mentor can teach you. The only way to get better is to actually trade so spending time trading and in front of the charts is the way to improve. Below is a nice image that goes over the risk reward in trading and can help you realize in the end it is a game of numbers and probabilities. Happy Trading!

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