1 The key skill of mark douglas trading in the zone is the ability to hear others. 2 The gift of persuasion. 3 Strategy and mark douglas trading in the zone. Sep 22, · Mark Douglas nor Paula T. Webb do not in any way endorse any of The Forex Guy products and/or services. The following excerpts posted below are from Mark Douglas’ book Trading In The Zone, are posted with the permission by Paula T. Webb” website: [2pump-pro.ml]. At the bottom of the article there is a link to book on Amazon (which I. Jan 28, · Mark Douglas explains trading stock technical price indicators. Mark Douglas explains trading stock technical price indicators. Amibroker/TradeStation Strategy Add On Modules; How to Match Strategy Expectations with Real-World Results. Mark Douglas, author of “Trading in.
He has a monthly readership oftraders and has taught over 20, students. Read More…. Mark Douglas, one of the greatest authors of trading psychology literature of our time, sadly passed away Mark douglas trading strategies this year.
I wanted to write a lesson dedicated to him that discusses some of his most important teachings on the all-important mental aspect of trading. What follows are short summaries of some of the most important points that Mark tried to stress to traders in order to help them achieve consistent profitability.
Whilst this lesson stands fine by itself and can be read in its own right, it will also form part of a new series that will go more in-depth on each of the points discussed below. We Mark douglas trading strategies discuss how, Mark douglas trading strategies, as traders, we can apply these Mark douglas trading strategies to real-world trading and leverage them when trading the price action strategies that I personally use and teach to my students.
Traders often begin trading a method with very high hopes. They want to produce an income they can rely on and get consistent results from their trading. However, this is only possible if you are trading an effective method with discipline and consistency, which most people simply do not do and as a result, they experience the profit gap that Mark refers to.
The key point that Mr. Douglas makes about this profit gap is that traders typically try to fill the gap by learning more about the market, changing methods, spending more time in front of their computers etc. Mark douglas trading strategies, what they really need to learn is more about themselves and how they interact with the market. Anyone, and I literally mean anyone, even a 5-year-old child, can find themselves in a winning trade.
It does not require any special skill to get lucky on any particular trade and hit a Mark douglas trading strategies. All you have to do is open your trading platform and push a few buttons and if you get lucky, you can make a lot of money in a short amount of time.
Needless to say, it is also how they get on the path to losing a whole lot of money just as fast or even faster than they made it. A winning Mark douglas trading strategies has the mental skills to realize, understand and utilize the FACT that any particular trade he or she takes has Mark douglas trading strategies a random outcome.
That is to say, they Mark douglas trading strategies possibly know the outcome of that trade until it is over. The winning trader knows this and they also know that they must trade in-line with this belief over a large series of trades and ignore all the temptations and feelings that get kicked up on each trade they take. They are able to do this because they keep their eyes on the bigger picture. Thus, do not mistake a winning trade for you being a winning trader, yet.
A very easy trap to fall into. Mental skills are things like; staying focused on the process, Mark douglas trading strategies your method, and not Mark douglas trading strategies about the consequences if this trade goes wrong. No matter how good the method, if you make mental errors you will lose. Essentially, as a trader, you are fighting against yourself to see which part of your brain has more control; the older, emotional and more primitive part or the more advanced logic and planning parts.
Technical methods of any kind, price action included, are not designed to tell us what a market will do next. There are some profound psychological implications that go along with this fact…, Mark douglas trading strategies. The outcome of any particular signal is unique and random. In other words, the nature of trading is random, Mark douglas trading strategies. Douglas goes onto to describe something that may be a little difficult to understand at first, but that is critical for you to grasp if you want to make consistent money trading:.
Now, on the surface, it seems contradictory to say you can produce consistent results from something that is random in nature.
Technical methods and patterns will give a trader the same advantage a casino has over any individual player. You can only generate consistent returns by understanding that each trade is random and unique, and then taking that information and using it to control yourself after each trade.
Do not get hung up on your last trade. Instead, focus on consistently trading your method over and over. There is no guarantee that this trade will be the exact same result as the last one, even if they look the same. Rather, the method only tells us that IF we use it consistently, then over a series of trades, we should be profitable.
Perhaps the point Mark Douglas is most famous for drilling into traders, is that you need to learn to think in probabilities. Learning to think in probabilities releases your expectations from trades because you are focused on the results of the overall series of trades, not on the result of any given trade.
Markets started as exchanges where people physically met to trade commodities, stocks, etc. Today, markets are basically entirely electronic and most traders trade from their laptops. This takes most of the personal, human connection out of what is actually a very person-driven profession.
All prices are people-generated events, everything happens because of what people believe…. You can find patterns price action patterns in collective human behavior by analyzing this price action. These patterns show us that there is a higher probability of one thing happening over another.
The problem is, the patterns repeat themselves on a random basis. Even though the criteria are correct a trade pattern that looks goodwe still cannot predict human behavior, an important point to remember.
When you put on a trade, do you know who took the other side? Essentially, once you place a trade, you need other people traders to want to buy or sell a market at a worse price than you did in order for you Mark douglas trading strategies become profitable on that trade. So, if you buy a market at 10 for example, someone else has to want to buy it at 11 or 12, in order to make you a winner.
Since you have no idea if that will happen or not, you cannot possibly predict the outcome of any given trade. Remember, all trades are people-driven and influenced events, you are not in control, Mark douglas trading strategies. Your trading strategy is only putting the odds in your favor over a series of trades, not guarantying you will win every trade. Once you start expecting each trade to win, you become emotionally attached to it, when as you should know by now, it is not any ONE trade that matters, but the overall series of trades and your ability to remain disciplined over that series that matters, Mark douglas trading strategies.
In a winning trade — traders start focusing on the retracements and end up exiting at a low-profit point rather than seeing that it will go back up. Stop thinking about the outcome of the trade and instead think about risk and where you will exit, Mark douglas trading strategies, not about IF the trade will be profitable. But you cannot start thinking you will be right or a whole host of problems will occur. By not thinking about being right or wrong, you will eliminate the potential for the market to disappoint you.
Just walk away. If you are susceptible to being disappointing, it will affect your perception of market information that would otherwise make you cut your losses.
Have you been profitable on a demo account then immediately started losing money when you switched to a real account? So, they naturally become focused on the things that matter; trading their method properly and slowly but surely building their trading account OVER TIME, Mark douglas trading strategies. If you ever lose your way and get totally frustrated and blow out your account. Simply go back to a demo trading account for a while and make note of how you feel and how you are trading, etc.
That is how you should trade a real account! As Mark Douglas says, one of the first things you need to Mark douglas trading strategies as a trader is how to put the odds of success in your favor. In other words, you need a high-probability trading edge. But, remember, a trading edge is simply a higher probability Mark douglas trading strategies one thing happening over another, over a SERIES of trades.
It is not a guarantee you will make money in the markets. You need to combine that trading edge with the proper mental skills…. Hi Nial, when you say each trade is random, does this mean we are gambling? However, if you repeat the process multiple times you are more likely to have more wins than not, thus making you profitable if you are good at execution.
He uses the gambling analogy himself but wants you to place yourself as the casino instead of the player. The casino makes long term money because with enough repetition, the probabilities likely align with the outcomes. So each single trade is a random gamble, but a large series of random high-probability trades increases likeliness of success.
May he rest in peace. Good article Nial. Mark was a gift to the trading world, as he delved into an area that is the waterloo of many a trader. Great Article Nial! I feel privileged to have met and Mark and some of his trading pals as we lived in the same city here in Arizona.
As always you are putting together meaningful articles to help your students succeed! Congrats on the contest win! Kirk B Arizona. Hi Nial, thanks for sharing who Mark Douglas was. His book is absolutely perfect timing for me. He has some solid gold gems in there that go deep. Finding your site a couple of months ago was also perfect timing.
You have turned my thinking degrees and I am very grateful that you did. Thank you Nial for this simple and sharp explanation of how to make instant random event a long term winning out put, Mark douglas trading strategies. I love the analogy you make between successful, Mark douglas trading strategies, disciplined traders and casinos, in respect of having an edge. Another informative and inspiring piece, Nial!
Many thanks, as always, Mark douglas trading strategies. Your additional comments mixed in make this article even better. Thank you for your words of wisdom. Thanks much! Sage advice from beginning to end.
Thanks Nial for bringing this to us. What an open eye experience!!
Strategies That. The Source" here - Mark and Paula T, the GURUS of Trading Psychology who created it all and live the success you dream of. Visit our website - and give us a call at ! ***Watch for our new website and products soon!*** by mark douglas and paula t webb can be used in any fashion without prior written permission. 1 The key skill of mark douglas trading in the zone is the ability to hear others. 2 The gift of persuasion. 3 Strategy and mark douglas trading in the zone. Despite what you think about Trading In The Zone, and the way Mark Douglas presents trading psychology, he is on nearly every traders recommended reading list. I have read Disciplined Trader, Trading In The Zone (twice), Listened to Trading In the Zone (twice), and just completed his Workshop cassette course The Path To Consistency.