12 instructions to be successful in the forex trader

Fifth instructions
Victory is a probability
 
One trader friend of mine once said, "This market seems to know what we are doing." When I try to limit losses, which occur often even affected by stop loss, then the price moves back length. After experiencing some losses, then we begin to assume that the discipline which has been adopted is a mistake. I then do not limit losses, for a moment I seem to get the advantage, although not large, but in the end I started out of control loss.
Another story is when I get the benefit, I had thought that the market seems to know what we are doing. Every time I try to let my profits grow, what happened instead is often times the market reversed course and it is precisely about the limit of loss that was my place. Because this happens repeatedly, I then become "risk averse " or people who are avoiding risk. When I got my little direct benefit release, and you'll know what happened, I was only able to get the tail end of an elephant.
Thinking that you are a victim, and the market is always intimidating, is not good for the mental health of trading, however, you must understand, that everyone who ever did the original transaction would face the same problem. Professional trader Peter Steidlmayer once said,
 
Peter Steidlmayer
"Trading activity is a game of probabilities, the objective is to benefit from the frequency of trading activitieswe do, not to earn big profits from each transaction or get all the opportunities from price movements in eachtransaction. "


The essence of this statement is very important to note. The formula for the probability of trading are:
(On average $ Profit x Win Rate) - (Avg $ Loss x Loss Rate) = Net Positive
 
This equation has important meaning because the "average" would mean the results of each transaction, while the equation will emphasize on the relationship between the entries and exits. Consider trading as a game ofprobability means to realize a win rate is far from our control. This also means that your defeat today is not a problem because you have another chance, that chance probability. A simple example for instance in the 10 transactions that occurred was 6 transaction losses by an average of 20 points, while 4 transactions benefit by an average of 50 points, then the calculation becomes:

• (Avg $ Profit x Win Rate) - (Avg $ Loss x Loss Rate) = Net Positive
•  (50 x 4 / 10) - (20 x 6 / 10) = +8 

By understanding that trading is a game of probability, you will be helped to always take every step we will do so is a focus which would you take. More importantly, you do not regret what he has done because you already take into account everything. William Eckhardt said,
 
William Eckhardt
"What feels right is often wrong. Humans by nature do not make trades to maximize profits but rather tomaximize the opportunity for profit. The desire to maximize the number of trades that win or lose minimizesome transactions made ​​by a trader. The success rate is statistically performance is less important. "

So, the true trading mentality is not to lose courage or hope the first transaction we will always be profitable. If you consider this transaction right decision, immediately do the trading. But if you assume that your decision is wrong, end immediately and prepare for the next trading. Because you actually defeat does not mean you lose. As long as you still keep this game well, you still have a chance probability of profit.
In an internet site, Paul Tudor Jones said:
 
Paul Tudor Jones
"I also often experience loss but I did not take into account the error three times I have done before because Ithink that is more important is what to do next ."