By: Hugh Kimura

Hugh Kimura — Fri, 10 Mar 2017 10:41:41 +0000

In reply to Reima.

Hey Reima,

Two things come to my mind…

1. Since I know that you test a lot and understand the probabilities, there is a reasonable degree of certainty, when entering a trade. Both with the winning percentage and return on a monthly/yearly basis. So it’s not completely random in that sense.

2. However, I think that you hit it on the head when you say that you “find it easier to accept the outcome,” when you see the result as random. That is huge because it allows you to take the pressure off yourself after you enter the trade. Also, you aren’t prone to labeling the trade as good or bad, based on if it won or lost. I’ve found that calling a trade bad, just because it lost money, is a common reason that traders get into a downward spiral.

Not sure if that is what you meant, but that is how I interpreted it 🙂

…and it’s a great point!

Thanks for commenting!

By: Reima

Reima — Thu, 09 Mar 2017 16:02:51 +0000

Fully agree, Hugh. Number 17 is actually an interesting point. I don’t believe that the markets are ALL random, but there are so much randomness in the markets, that I believe, that the outcome of each trade you take is quite close to random. It’s not actually so difficult to identify the possible turning points in the chart, but once you are in a trade, there are so many variables that can have an impact (either positive or negative) to your trade, that to me the final result is pretty random. But you can protect yourself from that by having a proper risk and money management in place. Win big, lose small…

I don’t know if this makes any sense to you, but I find it easier to accept the outcome of each trade when I don’t think too much why the market behaved in a way it did.

Comments on: 31 Statements That Prove That You are Not Ready to be a Pro Trader

By: Hugh Kimura

By: Reima