More or better market analysis is not the solution to trading difficulties or lack of consistent results.

You do not need to know what the market is going to do next to make money.

There is no way to trade without having to take a loss.

Making money as a trader is not a function of analysis.

Losses are an unavoidable component of trading.

Always define risk before you enter a trade.

There is always a cost associated with finding out what the market may do next.

You don’t need to know a trade is a winner before you put on your next trade.

The more a trader leans about the market, does not make it easier for him to execute his trade.

Your methodology must tell you under what market conditions to either enter or exit a trade.

The professional has learned to close the profit gap. They have evolved into a different way of thinking.

Always have a money management philosophy that is founded in the principle of always taking some
money out of the market when the market makes it available.

Trading successfully requires a degree of mental flexibility far beyond the scope of most people.

The most important component in a trader’s ability to accumulate money over time is having a belief in
his own consistency.

Professional traders have closed the gap between the possibilities available and their bottom-line
performance.

Those who have broken through the “threshold of consistentcy” the money not only is within their
grasp; they can virtually take it at will.

The winners have attained a mind-set-a unique set of attitudes—that allows them to remain disciplined,
focused, and above all, confident despite adverse conditions. They are no longer susceptible to trading
errors that plague everyone else.

When you fully accept the risks, it will have profound implications on your bottom-line performance.
The best traders can put on a trade without the slightest bit of hesitation, and just as freely and without
hesitation, admit it isn’t working. If you are unable to trade without the slightest bit of emotional
discomfort (specifically, fear), then you have not learned how to accept the risks inherent in trading. This
is a big problem, because to whatever degree you haven’t accepted the risk, is the same degree to
which you will avoid the risk.

Learning to accept the risk is a trading skill—the most important skill you can learn.
When you learn how to define an edge, and learn how to execute your trades flawlessly, what you are
now exposed to are the possibilities for unlimited wealth. There is nothing on the outside holding you
back, but there may be something on the inside holding you back. Those things on the inside could be
self sabotaging beliefs.

The best traders aren’t afraid. They aren’t afraid because they have developed attitudes that give them
the greatest degree of mental flexibility to flow in and out of trades based on what the market is telling
them about the possibilities from its perspective. At the same time, the best traders have developed
attitudes that prevent them from getting reckless.

You have to really believe you deserve the money to keep it.

There are no limits to the markets behavior. It can do anything at any moment. So if you are afraid of
being wrong or losing money, it means you will never learn enough to compensate for the negative
effects. You won’t be confident in the face of constant uncertainty. Unless you learn to completely
accept the possibility of an uncertain outcome, you will try either consciously or unconsciously to avoid
any possibility you define as painful.

You don’t have to know what is going to happen on a trade by trade basis to make consistent money.

Thinking that you know what will happen next creates an unrealistic outcome.

When you change your expectations to match how the market actually exists right now, your fear will go
aware. In this way, you will be able to close the profit gap because you will be able to do what you need
to do when you need to do it.

Getting in late, hesitate, get in too early, in other words you are assuming, thinking, or believing, you
know what happens next.

What is compelling me to make errors? Fear. What is behind the fear? The universal characteristic about
how we feel about our satisfaction?—I am expecting this trade to work. The reason I am having a
problem is that I am expecting this trade to work. I am not thinking that I have a series of trades. Even
though the outcome of each individual pattern is random, the outcome of a series of patters is
consistent (and statistically reliable).

At the most fundamental level, the market is simply a series of up and down tics that form patterns.
Technical analysis defines these patterns as edges. Any particular pattern defined as an edge is simply an
indication that there is a higher probability that the market will move in one direction over the other.
However, there is a major mental paradox here because a pattern implies consistency, or, at least, a
consistent outcome. But the reality is each pattern is a unique occurrence. They may look (or measure)
exactly the same from one occurrence to the next, but the similarities are only on the surface. The
underlying force behind each pattern is traders, and the traders who contribute to the formation of one
pattern are always different from the traders who contribute to the next, so the outcome of each
pattern is random relative to one another. Our minds have n inherent design characteristic that can
make this paradox difficult to deal with. Now these edges, or the patterns they represent, flow by in
every time frame, making the market a never-ending stream of opportunities to get in, get out, take
profit, cut losses, or add to a or detract from a position. In other words, from the market’s perspective,
each moment presents each one of us traders with the opportunity to do something on our behalf.

Making money consistently is a by-product of acquiring and mastering certain mental skills. The degree
to which you understand this is the same degree to which you will stop focusing on the money and focus
instead on how you can use your trading as a tool to master these skills. The skills are consistency is the
result of a carefree, objective state of mind, where we are making ourselves available to perceive and
act upon whatever the market is offering us in any given “now moment.”

If you believe that anything can happen and that you don’t need to know what is going to happen next
to make money, then you will always be right. Your expectations will always be in harmony with the
conditions as they exist from the market’s perspective, effectively neutralizing your potential to
experience emotional pain. By the same token, how can a losing trade or even a series of losers have the
typical negative effect, if you really believe that trading is a probability or numbers game? If your edge
puts the odds in your favor, then every loss puts you that much closer to a win. When you really believe
this, you response to a losing trade will no longer take on a negative emotional quality.

Cutting profits short—if the trader had a belief in a random outcome, and believes that don’t have to
know the outcome to make money. What would he be expecting? That there is just a random outcome
between wins and losses that define his edge. If he believed that it only takes 1 trader somewhere in the
world to negate the outcome. How would he be handling this? Would he be saddled with the emotional
problems of the fear of being wrong or the fear of losing money? No because the professional trader
trades from a series of trades perspective and doesn’t know what a single trade is going to do.

If I put on a trade and feel great, its because I was a winner. If I put on a trade and feel terrible, its
because I was wrong. The reality is that neither were true, because when the trade worked, I wasn’t
right, and when the trade failed, I wasn’t wrong either. Because whatever reason I had to put on the
trade in the first place, had no correlation to what actually happened. I simply put on a trade at a
particular time and it worked. And all patterns put in you in a likelihood that when you put the trade on,
it will work. Its not on a trade by trade basis. It is a series of trades.

Change is a function of desire. All change is desire. If the desire is there, you will find a way to facilitate
the change.