The market offers unlimited opportunities to players who understand what is going to happen next in the market.
It does not apologize for taking your money when you’re wrong. It doesn’t feel bad when you’re caught off-guard by a surprise move.
The market is not a person and it doesn’t care one little bit about the money you’ve gained or lost.
It fluctuates in a way that frustrates the majority of players, and rewards only the 5% of traders who understand that it’s NOT news, technical analysis, or earnings that make the market move.
The top 5% of professionals who make consistent profits in the market look at the market differently than ordinary traders (aka “retail traders”) .
Retail traders tend to personify the market and project that the market has an ego or personality. They get mad at the market when they miss an opportunity, become happy when they have a winning trade, and sad when they lose money.
The market is like the weather. They’re both powerful natural forces, yet you would never get mad at yourself or at the sky if the weather turned nasty, would you?
The top 5% of traders look at the market like the weather… they depersonalize the market and respect the power that it has. Just like a tornado or a major storm, the market can be volatile at times, but it also has its calm, sunny days too. These are totally natural occurrences in the cycle of any natural environment.
You would never say that the weather is “out to get you”, but how many traders think… Read more…