I have talked many times with people who are interested in be consistent in the stock marketwhich fails because instead of using verified information, it uses bad information.
It is essential that a trading system offer the participant a statistical advantage about the market. This allows your user to have the odds in their favor.
But this advantage has to be documented. It is not worth it that one “seems” that the market will make a certain displacement. It is imperative that one “know” why he has it documented like this, what is the probability that he makes a certain displacement or the opposite.
To win in the market consistently, it is not enough to participate in an amateurish and improvised way. It is necessary that one have verified information and base your participation on knowledge, not sensation.
There are several reasons that explain this disastrous behavior:
- On the one hand, there is a lack of knowledge of the requirements that are necessary to win in the markets. Concepts such as “statistical advantage”, “think the odds”, “less than zero risk of ruin”, etc.
- On the other hand, there is the game of rewards and gratifications, which makes being in front of the market, with your hand on the mouse, and ready to take positions, more interesting and fun, than statistically documenting a price pattern, or documenting certain set of strategies to manage the position.
If you are interested in participating in the markets professionally, you need your performance to be professional and that you manage your activity as you would manage a business. Don’t dedicate yourself to playing, don’t spend your time participating without documenting the statistics of your patterns, don’t think that a new indicator will make you win… The key to success is to have a documented statistical advantage and use your Knowledge, not your feeling