- keep taking every trade indicated by this "edge"
- since the trade is based on a proven seasoned "edge" and since you know that anything can happen in a given trade, and since you also know that irrespective of the outcome of this trade you are bound to make good money if you keep following your "edge" without anxiety in the long run, stay in the trade till it is "definitely wrong".
- take the next trade irrespective of the outcome of previous trade.
- if the edge is right, by probability, you will make good money in the long run.
- do all this with a trade size just right for sound sleep at night.
these formulae are based on the following five fundamental truths
given by mark douglas
in
trading in the zone
1. anything can happen.
2. you don’t need to know what is going to happen next in order to make money.
3. there is a random distribution between wins and losses for any given set of variables that define an edge.
4. an edge is nothing more than an indication of a higher probability of one thing happening over another.
5. every moment in the market is unique.
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