Profitable Consistent Trader... Part 2

Markets are dynamic. You cannot predict how the market will behave in a certain way. Market movement is based on probability, and your trading reflects it. The price movement gives the information about the trend. From that, we form our perceptions/views about the market. Our perceptions are the basis for trading. Changing our perceptions can be a problem for some people.
For instance, "Person A" holds an optimistic outlook on the market prior to its opening. When the market opens higher and indicates a potential reversal, if "Person A" fails to adjust their perspective by recognizing these reversal signals, they will incur losses. On the other hand, frequently altering one's viewpoint is also detrimental. If you switch your opinion about the trend with every single candle pattern, you will lack a clear understanding of the market's direction.
Let’s address the crucial issue: how can we overcome it?
Focus on high-probability trade setups and effective trading strategies. Only execute trades when your predetermined setups materialize. This approach will provide you with clarity and confidence as you rely on proven trade setups and strategies.
Are you looking to shorten the duration of the intermediate phase?
Steer clear of making random trades. Always prepare a plan for how to respond to market changes. Once market opens, your emotions will come into play, making it challenging to process information, devise a trade plan, and decide on your actions.
Your success hinges on how you interpret the market through your trade setups and trading strategy.
Market structures continuously evolve based on the mindset and sentiment of the participants. A trader's approach to managing their trades shifts accordingly. For instance, If you are driving on a highway, you can drive fast. However, you are not allowed to drive fast inside the city. In the same way, your trading strategy, risk management, and trade management must adapt to the current market structure. Relying on a single strategy across all market conditions is unlikely to yield profits for a trader. Gaining an understanding of market structure comes with experience, but enhancing that understanding hinges on the trader's ability to adapt.
This can be explained through the tale of “rabbit & tortoise” The rabbit and the tortoise decided to compete in a race.
Race 1: During the race, the rabbit took a nap, allowing the tortoise to emerge victorious.
Moral of race 1: Continuous effort is essential for becoming a successful trader.
Race 2: This time, the rabbit stayed awake and secured the win.
Moral of race 2: No strategy is foolproof. Acknowledge that reality.
Race 3: Wanting to win, the tortoise altered its approach and challenged the rabbit to a race across the river. The rabbit ran along the riverbank, taking longer to cross, while the tortoise simply swam straight across and reached the other side first. The tortoise triumphed.
Moral of race 3: Choose your strategy according to the market conditions. Quickly adjust when there are changes in market dynamics. Race 4: The rabbit and the tortoise became companions. They agreed to alternate victories in their races. Moral of race 4: Long-lasting success or profit is achievable when there is little to no ego involved. In trading, when your stop loss is triggered, acknowledge it and exit the trade. Avoid engaging in revenge trading. To be successful, think differently from other traders. Profit is not reliant on flashy indicators or strategies; it hinges on how well you control your emotions during trading and how effectively you execute the trades.
Although the rabbit had good speed, it lost in race 1 due to incorrect execution, just like a good strategy or trade set up that is not executed properly can take away your profit.
(To be continued next week...)