stay alive long enough for probabilities to work
I was listening to Mark Douglas today, and he was talking about how the urge to trade big lot sizes has destroyed many a trader. And at first all I thought was that if I have a good strategy why shouldnt I have the confidence to trade big lot sizes? But then he explained that in trading there is a 50/50 chance of winning/losing so if you lose all your money on one trade then you wont have funds to keep trading when the probability is in your favor. Thoughts?
Overconfidence kills, it causes you to forget that every trade is 50/50 probability. It makes you feel you have the market figured out 😂
Its just another way of saying trading is a game of probabilities so you have to play your strategy long enough for the odds to go in your favor. If you burn out and crash out of the sky early then you will never know if the odds would have been in your favor.
The market tends to reveal you to yourself. The market is a revealer. Trading is all about the discovery of yourself.