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ARTICLES 1
Are You Consistent?
Traders often get frustrated when they see the market doing the
"unexpected."
This occurs because they have a pre-conceived idea of what the
market "should do." And when it doesn't behave according to their Wave Count, or their Gann
calculations or their Fibonacci cluster or their indicators' clear signals ... well, they just get
frustrated.
This comes from a belief that the market has a pattern that is
knowable and it should follow consistently.
People much smarter than us have been studying the markets for many,
many years. Yet the debate is alive and well as to whether or not the market is simply a "random
walk."
The fact the subject has not been settled among the greatest
thinkers is significant.
My belief is ... yes, it mostly is chaotic.
It is completely unpredictable.
It is impossible to forecast.
But there are times ... and it isn't most of the time... but there
are times when certain patterns occur that put the PROBABILITIES of a certain action
occurring.
Note that this is not predicting or forecasting.
The truth is, the market can do ANYTHING AT ANY TIME.
You should never be surprised, confused or frustrated, because that
indicates you had some expectation of the future.
Let me clarify ...
You should never be surprised, confused or frustrated about what the
MARKET does.
You should only be surprised, confused or frustrated about what YOU
do.
And then the course to Mastery is to even eliminate that, so you
become consistent ... only trading when probabilities are clearly on your side, as evidenced from
thorough testing that you yourself have conducted to your own satisfaction.
As they say: "The consistency you need is in your mind, not in the
market."
- Dr. Barry Burns
http://www.topdogtrading.com
barry@topdogtrading.com (c)
2007
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