Again from Trading in the Zone:
Fundamental Truths of Trading.
1. Anything can happen.
2. You don’t need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in the market is unique.
The five truths will also create a state of mind in which you will genuinely accept the risks of trading.
When you genuinely accept the risks, you will be at peace with any outcome. When you’re at peace
with any outcome, you will experience a carefree, objective state of mind, where you make yourself
available to perceive and act upon whatever the market is offering you (from its perspective) at any
given “now moment.”
The seven principles of consistency:
1. I objectively identify my edges.
2. I predefine the risk of every trade.
3. I completely accept risk or I am willing to let go of the trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me.
6. I continually monitor my susceptibility for making errors.
7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.