Thread by @madan_kumar

#MwMnuggets

Recently tweeted about 'why predicting the markets direction/how long & how far it will move is a futile endeavor in the long run'

Now, many have this question in their mind "How to avoid personal biases during trading & follow the market without any bias?"

(1/7)

Answer: To remove our personal biases and let the mkt tell us what to do is to 'give up control' 😊

As we are wired to control situations/events/people naturally, controlling 'how much' money to make from the markets will be an obvious/no-brainer route to fall upon

(2/7)

But to give up control, we need to give up the notion that we are actually in charge of how much money we make.

For profitable trading, we need to move into the mental state of letting the market determine the profits, not us.

(3/7)

It wont be whether we predict the mkt correctly that determines the profits, but it is all about this simple stuff - whether our strategy is in profitable or drawdown mode as determined by the markets 😊

Ultimately, the mkts determines the profits through its movement.

(4/7)

Please understand that the market experts are not magicians. 99% don't profit from their predictions but the 1% who profit from their predictions do so because of only this reason - they dint make money because they predicted the markets correctly...

(5/7)

..but they made money because they 'traded' the markets correctly (with sound trading practices)

When we say 'sound trading practices', it all boild down to these things - sound money management (MM), position sizing and risk control.

(6/7)

So, trade your strategy (+ sound trading practices) & let the mkt do the rest. Pls know that the mkt gives ₹₹ and mkt takes away ₹₹

Our only goal should be to have a strategy/MM in place that give us more ₹₹ than what it takes away

Think hard about it this wknd 😊

(7/7)