SPYSPXNVDAAAPLTSLA Traders, listen to this carefully: There is mathematics in trading, but trading is not mathematics. In mathematics, for every problem, there is a unique solution. However, in trading, for every situation, there are many possible solutions. Your job as a trader is to find the best and most reasonable solution. If you think of trading like mathematics, then you will always stick to one unique solution. For instance, let's say you analyze the market and find out that the market will go in the X direction (here, you think like a mathematician). However, as a trader, you should determine the chances that the market will go in the X direction, and if that probability exceeds other possible scenarios, then go ahead with it and mark it out. In short, apply mathematics in trading, but thinking of the market like mathematics will limit your psychological flexibility. Do not compare this mind with Probability (a branch of mathematics), just try to get the idea and logic behind it.
SPYSPXNVDATSLAAAPL 90% of retail traders put all their energy into finding ways and building strategies to maximize their returns, yet 90% of traders lose money in the market. One major thing that most traders miss and will continue to disregard is risk management skills. If you are in your initial trading days, then spend 70% of your time learning how to effectively save your capital and minimize losses. Because if you are able to survive longer, you are likely to learn more and more over time, and sooner you will become one of the biggest competitors in the stock market. Always think about loss before profit, and always respect the market’s decisions.