Five Fundamental Truths About the Nature of Trading

by Mark Douglas

  1. Anything can happen.
  2. Every moment is unique.
  3. An edge is nothing more than an indication of a higher probability of one thing happening over another.
  4. There is a random distribution between wins and losses on any given set of variables that define an edge.
  5. You don’t need to know what is going to happen next to produce a consistent income.

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