Why Pros Win and Amateurs Lose Every Time

Amateurs think trading is about finding the perfect

  • Chart pattern
  • Indicator
  • Moving average
  • Trading system
  • Market guru

Pros have been down all of those roads…and found an empty pot at the end of each one.

So where is the pot of gold? Look within.

The truth is, there are many professional traders who use different indicators, chart patterns, and moving averages. There are pros that trade different markets, use different software, and employ different time frames.

Profitable traders are NOT ALIKE on any of these factors. So the answer must not be with any of them.

That leads to the magic question you’re likely asking yourself now:

“What is the common denominator of all profitable traders?”

I’ll tell you if you want to know. But like all great revelations…the real truth is somewhat disappointing.

What you imagined in your mind is much more exciting, enticing and romantic.

The truth is more mundane and common…but it’s what really works.

Ready? Okay, here it is. The one thing common to all great traders is this:

They are excellent managers.

That may be confusing, so let’s define that. They are excellent managers of 2 things: 1. Their money.
2. Themselves.

This is not the answer that most people are looking for, or even want to hear. But when you think about it, it makes perfect sense if you’re willing to face these 2 critical facts:

  • You can’t predict the future.
  • You can’t control what the market is going to do.

So the only thing you CAN control is yourself — how you manage your money and if you stick to your rules.

Most traders fail because they don’t control themselves — they don’t stick to their money management and trading rules.

If you can’t control the market, and you don’t control yourself…

…well, then your trading is totally out of control!

Traders often get frustrated when they see the market doing the “unexpected.”

This occurs because they have a pre-conceived idea of what the market “should do.” And when it doesn’t behave according to their Wave Count, or their Gann calculations or their Fibonacci cluster or their indicators’ clear signals…well, they just get frustrated.

This comes from a belief that the market has a pattern that is knowable and it should follow consistently. Though they wouldn’t state it this way, deep down inside they are operating from a belief that they can tell the future.

People much smarter than us have been studying the markets for many, many years. Yet the debate is alive and well as to whether or not the market is simply a “random walk.”

The fact the subject has not been settled among the greatest thinkers is significant.

My belief is…yes, it mostly is chaotic.

  • It is completely unpredictable.
  • It is impossible to forecast.

But there are times when certain patterns occur that put the PROBABILITIES of a certain action occurring.

Note that this is not predicting or forecasting.

The truth is, the market can do ANYTHING AT ANY TIME.

You should never be surprised, confused or frustrated, because that indicates you had some expectation of the future.

Let me clarify…

You should never be surprised, confused or frustrated about what the MARKET does.

You should only be surprised, confused or frustrated about what YOU do.

The course to trading mastery is to eliminate that lack of self-control, so you become consistent…only trading when probabilities are clearly on your side, as evidenced from thorough testing that you yourself have conducted to your own satisfaction.

As they say: “The consistency you need is in your mind, not in the market.”