This is a rare known truth about the markets, and it's difficult for many traders to believe, but necessary to wrap your head around for successful trading and understanding probability. Because supply and demand move the markets, there is no way to have 100% certainty on the decisions of buyers or sellers on the sidelines. This is why no strategy, bot, system or trader has 100% accuracy.
The purpose of a trading system is to provide "predictability through probability"(read that again). Technical analysis is the main process for achieving this, but there are other ways. Since the markets are created through supply and demand it's our job as traders to identify a system that predicts when buyers and sellers will emerge. Thankfully we don't have goats, monkeys, or lions buying and selling in our market, instead we have one species... the human species. Taken individually, it is impossible to predict what one person will decide in the market; however, as a collective, the human species tend to make decisions around the same reasoning, or psychology, which creates patterns in the markets.
The market is random because we don't have certainty of sidelined participants looking to buy or sell, but because humans make decisions based on similar psychology, price patterns form as an illustration of this crowd psychology. We use technical analysis to create a system utilizing math that provides predictability on where these participants will buy or sell, which gives is probability to produce reliable results.
This is a fundamental truth to absorb in order to become a successful trader.
But how do you create probability? It seems pretty important.
Glad you asked...
Probability is created through a consistent decision making process based on the same variables and executed over a period of time. (we can't create probability with three trades made in a day)
Unfortunately for most traders the only thing consistent about their decision making process is inconsistency. Constantly adding and removing variables that impact their decisions, therefore making trading very unreliable and never becoming successful.
Take a moment to reflect on your own decision making process for buying and selling in the markets. Are you frequently trying new indicators, learning new technical tools to assist you, and letting your emotions get in the way?
It's common, but I'm here to show you how to stop it and provide you with the system you need to become a successful trader. Let's just take it step by step, cause it's not going to happen overnight, but I can provide you with the fastest and most effective solution for achieving it.
I could write a book on this and probably will some day, however for now I've put together an online training for Three Breakthroughs To Becoming A Successful Trader that builds upon this.
If you haven't already registered for it you can do so by [Clicking Here]