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LESSON: Why You Need to be Able to Think in Uncertainty

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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”]Traders can often become unstuck because of the way the make or manage their trades, without even knowing they are looking for this sense of certainty.

In life in general we are all given this feeling of certainty. We are certain that the sun will shine, certain the door will lock and certain the computer will turn on when we press the on button etc. What happens, when something we think is certain doesn’t happen, like that last example and the computer doesn’t turn on? We get a terrible feeling that we try to avoid at all costs!

In Trading There Are NO Certainties

You don’t know what will happen in the markets. You don’t know what will happen when you enter a setup, you don’t have a certain time any trade will last for, and you don’t know a minimum amount of money you can lose, in fact you can lose more than you originally had planned.

So what do rational smart people do when they come to the trading world? They look and for crave for something that they cannot have and something that does not exist. Certainty! First they start for the search for the Holy Grail or that one method that will give them certainty or they do settle on a method and try to create certainty out of the method.

They want to make sure they can make winners without losing, or when they get into the trade they don’t want price to go against them.

Once in a trade, a trader will often start to scramble to make ‘snap’ trade management decisions so that price cannot and will not go against them and they will never be wrong!

Forget it

The market is a random event. You cannot have certain outcomes. Everything is a matter of possibilities, and as you will soon see having an edge over time. The best traders are the traders who realise that the market creates random events and they never hesitate on pulling the trigger.

They don’t spend hours after a losing trade wondering what exactly they did wrong as they understand there are NO certainties in trading. Next time a possible trade comes around this same trader will pull that trigger just as quick and hard as he does with all other trades.[/text_block][/op_liveeditor_element]