Trading stories must be left at the door❓
Disciplined trading is required, not stories❗️
Recognizing a fundamental truth is essential: Trading is not a personal endeavour. It’s a common misconception among new traders that their individual beliefs, hopes, or fears can positively influence their trading decisions. The reality is that the market is a collective entity indifferent to personal stories. It moves according to its rhythms, driven by many factors.
🔸 The Impersonal Nature of the Market: The market is not sentient; it does not have feelings or personal vendettas. It reflects the collective actions and reactions of all its participants. As such, it’s critical to approach trading with an objective mindset. Personal biases can cloud judgment and lead to decisions that are not based on the actual state of the market.
🔸 The trading goal is straightforward: to generate an upward-sloping equity curve over a series of trades. A trader must learn to interpret the market’s signals to achieve this. This information is like the market’s language; it is a trader’s job to become fluent in understanding and effectively using it.
🔸 The Importance of Rules: A trader needs a compass to navigate the market successfully —a set of rules or a system that guides trading decisions. These rules should be based on sound trading principles. It’s not enough to have rules; a trader must be disciplined to follow them. While intuition can sometimes be helpful, it mustn’t lead a trader astray from their established trading plan. A trader’s rules are the roadmap, and straying from them can lead to the kind of ad-hoc decision-making that is the downfall of many traders.
📌 A trader must leave personal stories at the door when entering the trading world. Approach the market objectively, be armed with solid rules, and be disciplined to follow them. This is the foundation on which successful trading careers are built.