What is the best no loss strategy for intraday?
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"Author of the industry classic, Trading in the Zone - Mark Douglas’s quote emphasizes the probabilistic nature of trading and the importance of decisions based on likelihoods rather than absolute certainties"
Trading is not about being right or wrong, it is about managing probabilities.
Author of the industry classic, Trading in the Zone - Mark Douglas’s quote emphasizes the probabilistic nature of trading and the importance of decisions based on likelihoods rather than absolute certainties. The markets are inherently uncertain and influenced by a multitude of factors from economic data to geopolitical events. As a result, it is impossible to predict market movements with absolute certainty.
Successful traders often prioritize risk-adjusted returns assessing potential gains relative to the level of risk taken. It is not just about making winning trades but about ensuring that the potential reward justifies the potential risk.
Traders should cultivate a mindset that acknowledges the statistical nature of trading outcomes. Instead of seeking certainty, focus on identifying setups with higher probabilities of success. Believing that you can predict market movements with certainty can lead to overconfidence resulting in larger positions and greater risk-taking which may lead to significant losses.
Accepting that trading is about managing probabilities can reduce the emotional stress that comes with the uncertainty of trading the markets. Those who understand this are less likely to become overly anxious or frustrated when a trade doesn’t go as planned.
Credit: Quora