Best Loser Wins: Why Normal Thinking Never Wins the Trading Game – written by a high-stake day trader

It simply depends on the time frame you are looking at. If you are a five-minute candle trader, you don’t care that the trend on the weekly chart is down. You care about the trend of the five-minute chart.

Look at your own life. You love to surf. You wait for the waves, and you paddle into their energy flow, and you ride the wave. How is that any different to what we do as traders? When you are out there, sitting outside the impact zone, waiting to paddle in, you don’t paddle when there are no waves. You are patient. When the right size wave builds u

The ideal mindset might be fearless, but it is not reckless.

On those days our clients lost the most. If the market was rallying, they would either do nothing, or they would try to find a place to sell short. If the market was falling, they would do nothing; but more likely they would try to find the low of the day and buy.

I am a process-oriented trader. I do not believe in goal setting. There are no Post-It Notes on my monitor reminding me how much I want to make today or this month or year. I have no monetary goals or pip/point goals. I will take what the market will give me. I never trade with targets. By being utterly focused on the process as opposed to being ou

It meant they had plenty of small losses. Their back-testing had shown that if the strategy was to be traded correctly, it would work immediately. If it didn’t work immediately, the strategy called for the position to be closed.

am not arguing that you can do without technical analysis, or some form of analysis. There must be some rhyme or reason to your entries and exits, and your stop-loss placement.

It is how traders think about their strategy – and their ability to follow the strategy – that will set them apart.

Put simply, the market disagrees with us, but we have faith that the market is wrong, and we add to a losing position; or the market agrees with us by showing a profit, but we doubt the market is right, so we don’t add to our winning position.