Accepting Uncertainty

As I am doing historical Price Action and Strength analysis I am seeing a lot of great opportunities that I was watching live and missed nevertheless. I can see clearly that the Market is providing me with a couple great entries every single week, and yet I am not acting on many of those.

Naturally, when I look back, I make pictures only of great trades that I missed and so I fail to realize that there are many signals that look just as great in real time but would lose money if acted upon. This goes to show that picking out trading signals is a losing proposition on the whole. We must act upon anything that looks like an entry trigger in the potential long term direction.

Really, when we come thinking about it, how else can it be?

Any entry trigger is uncertain. It can never be a 100% indication of a profitable trade ahead. It is just an indication of a familiar pattern that is utilize in our trading system.

Any future trend is only potential. It can never be certain, we can never know how the Market will behave in the next couple days.

So the trading process is very simple:

  1. Accept the uncertainty
  2. Recognize an uncertain, potential future long term trend
  3. Recognize a pattern that simply looks like an entry trigger
  4. Accept the uncertainty
  5. Pull the trigger

This simple procedures assumes that all Money and Risk management is taken care off, and one should never even approach the markets without it. After all, this is the only area of our business where we can achieve some certainty.

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