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LESSON: No Method Can be 100% Correct

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]I am here to tell you that no matter what method you are trading, you are going to experience losses. You may as well start getting use to the idea! Sure we have all seen the advertisements for the black box that is 100% correct 100% of the time or some other magic fairy indicator someone giving away for some bargain price that never ever loses or whatever spammy rubbish they will try and tell us.

The cold hard truth is; the best trader is 1,000 years could not go without making losses – and what I am trying to teach you in this whole students course and especially in this psychology / create edge course; the aim of the game is to find an edge and then play the edge to your advantage and make money from it; not do follow others and do what they do.

You may find your edge is pin bars only and you just crush the pin bar over and over and over and over and over and that is how you make money. It make be something else, but you find YOUR EDGE and crush it, over and over right?

So Why Then Can We not Make 100% Winners?

The reason no method no matter how fantastic or secret it is can be right 100% of the time is because of us humans. The markets are made up of human traders, all over the world trading is taking place and these people are trading the market. These same traders by either buying or selling make the markets go up or down. So think about this for a second. When traders are in a trade what makes them a winner or loser? That’s right, all the other traders in the market, that are buying or selling the price higher or lower.

Next time you see some wild claim of 99% accurate think to yourself, does that person or black box system know what people are going to do 99% of the time?

This is also the reason why I always stress to students to never over risk on any one trade. No matter how good any particular trade looks we never know how it will turn out. For example we may have a bearish pin bar that is clearly an A+ price action signal to short.

This pin bar goes onto be a huge winner. 2 days later we get a setup that’s looks identical to the first setup. This pin bar however goes onto be a loss. How can this be? The reason is once again because of humans! No market will ever have the same exact people taking part doing the exact same thing as they have done in the past. In other words in the first trade one lot of people entered the market and sold the price lower. We can never count on these same people doing the exact same thing with the exact same quantity ever again. With this in mind we never know what trades will be our winning trades and which trades will be our losers.

This does not mean that we cannot learn to spot patterns in the market and begin to profit from them because we can. However; we need to always remember, we never know which trades will be the winners and which trades will be the losers. With that thought in mind it should help you to never over risk on any one trade![/text_block][/op_liveeditor_element]