Market is ever changing.
Market is full of surprises.
Market is not predictable all the time.
Market is complex.
Market offers too many choices.
Market is full of traps.
Market is not controllable but.....
your methods are compltely under your controll. Your reaction to the market is under your control. What you can control is your own method to trade the market.
Trading decisions fall in to five "controllable" categories which I call Trading Mix:
1. What time frames to trade (trade frequency)
- Day trade
- swing trade
- position trate
- macro trade
3. When, where, and how to enter them (entry selection)
4. When , where , and how to exit them (exit selection)
5. How to manage risk (risk management)
how much to risk per trade
where to put stops
how and when to use margin
The profit opportunity is in the market if you get the mix of above elements right the result is profit. Each of these five variables are completely under your control.
If you change these variables your profit increases or decreases. So for a same size of profit opportunity in the market two traders using two different set of trading mix will have completely different profit outcomes. Controlling your trading mix is the key to profitability.