zYzzYva's blog

[zYzzYva]

The Five Fundamental Truths.

1. Anything can happen.

2. You don't need to know what is going to happen next in order to make money.

3. There is a random distribution between wins and losses for any given set of variables that define an
edge.

4. An edge is nothing more than an indication of a higher probability of one thing happening over
another.

5. Every moment in the market is unique.

 

[zYzzYva]

Answers.

What Are the Objectives? Ultimately, of course, making money is everyone's objective. But trading is not only a matter of making money. Putting on a winning trade or even a series of winning trades requires absolutely no skill. On the other hand, creating consistent results and being able to keep what we've created does require skill. Making money consistently is a by-product of acquiring and mastering certain mental skills. The degree to which you understand this is the same degree to which you will stop focusing on the money and focus instead on
how you can use your trading as a tool to master these skills.



What Are the Skills? Consistency is the result of a carefree, objective state of mind, where we are making ourselves available to perceive and act upon whatever the market is offering us (from its perspective) in any given "now moment."



What Is a Carefree State of Mind? Carefree means confident, but not euphoric. When you are in a
carefree state of mind, you won't feel any fear, hesitation, or compulsion to do anything, because
you've effectively eliminated the potential to define and interpret market information as threatening. To
remove the sense of threat, you have to accept the risk completely. When you have accepted the risk, you will be at peace with any outcome. To be at peace with any outcome, you must reconcile anything
in your mental environment that conflicts with the five fundamental truths about the market. What's
more, you also have to integrate these truths into your mental system as core beliefs.



What Is Objectivity? Objectivity is a state of mind where you have conscious access to everything
you have learned about the nature of market movement. In other words, nothing is being blocked or altered by your pain avoidance mechanisms.



What Does it Mean to Make Yourself Available? Making yourself available means trading from the perspective that you have nothing to prove. You aren't trying to win or to avoid losing. You aren't trying get your money back or to take revenge on the market. In other words, you come to the market with no agenda other than to let it unfold in any way that it chooses and to be in the best state of mind to recognize and take advantage of the opportunities it makes available to you.



What Is the "Now Moment'? Trading in the "now moment" means that there is no potential to associate an opportunity to get into, get out of, add too, or detract from a trade with a past experience that already exists in your mental environment.

 

[zYzzYva]

How Beliefs Shape Our Lives.

1. They manage our perception and interpretation of environmental information in a way that is
consistent with what we believe.

2. They create our expectations. Keep in mind that an expectation is a belief projected into some future
moment. Since we can't expect something we don't know about, we could also say that an expectation
is what we know projected into some future moment.

3. Anything we decide to do or any outward expression of behavior will be consistent with what we
believe.

4. Finally, our beliefs shape how we feel about the results of our actions.

 

[zYzzYva]

I am a consistent winner because:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success and, therefore, I
never violate them.