Thread by @SimpleTrader66

BOOK: Trading in the Zone by Mark Douglas.

I have summarized 10 important points from the book.

Save your time and read the below thread to be a better Trader than yesterday.

A Thread🧵👇

Mark Douglas provides five fundamental truths to help you embrace risk and uncertainty.

1. Anything can happen:

Your bias may happen tomorrow, next week or next year, But today anything can happen. Prepare for that.

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

No one knows 100% what is going to happen next in the market, Play the probability game.

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

The trader faces uncertainty every trading day, and the realization that the outcome of each trade is completely out of his control. (Cont..)

Therefore, the skill necessary for trading success is not just in recognizing a pattern, but in developing and embracing beliefs about what to expect from the uncertain environment that defines the nature of the stock market.

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

My edge is to trade other traders decisions without using any indicators, Pattens,Data & News. I call it as logical way of trading. To read more ->simpletraderworld.com/about-simple-t…

5. Every moment in the market is unique:

Market waits to surprise everyone on any day. Everyday is unique day.

These are the five fundamental truths about the market where trader needs to understand.

Next, Mark Douglas suggest 5 principles to trade with care free mind.

1. Identify your Edge:

You need to identify what is your trading style.
- Is it based on indicators?
- Is it based on price action chart patterns?
- Is it based on Decoding the data?
- Are your going to trade breakouts?
- Are you going to trade pullbacks?

Define your edge.

2. Pre-define the Risk of every Trade:

If you truly accept that your next trade is random and there is a possibility that you will lose money.

Why would you not define your risk ?

Predefined your risk involves setting in a stop loss and sizing your positions.

3. Learn to completely accept the risks associated with trading:

So that you will not be surprised if the trade ends up being a loser. Take the small losses and move ON.

4. Execute your trading setups without any hesitation:

Once you identified your edge and know what is your maximum risks, do not hesitate to trade your setup.

I trade my four setups(BOF, BOL, TRBO, BOS) I will never reverse myself to enter into the trade when setups forms.

5. Continuously monitor yourself. If you find your are making errors and identify it and rectify it:

Because you are your own boss.

I have written small article about it. To read ->simpletraderworld.com/post/boss-who-…

Above are my understanding from the book. If this add value, do Retweet and follow @SimpleTrader66 for more such threads.

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