One should always approach life with the perspective of
probability.
In a world of uncertainty, the best is to push the chance in
one’s favour. To a certain extent, one is always vulnerable to any unforeseeable
event - black swan.
The black swan theory is a metaphor that describes an unforeseeable
event that comes as a big shock.
When there is no
certainty, one must always be watchful and make every effort to initiate an array
of setups to elevate the probability to one’s advantage to the maximum. Nowhere
is this more evident in our life than in the world of business, speculation and
etc.
Each time whenever one wins, one should take it it’s like
the first time and like a new independent event in one’s life. Never assume the
result will always be the same and in one’s favour based on past results.
Losing is common and it’s just probability. As probability
is mathematics, many events cannot be predicted with absolute certainty. Since there’s
always a chance of a different outcome, one can only put probabilities on one’s
side.
Trading is all about losing and losing well, cutting losses
and letting profits run. For short term trading, exit when the price closes
below or far away from the moving average 5, trendline and after a failed
breakout.
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