Today's Quote: “You must be rigid in your rules and flexible in your expectations. Most traders are flexible in their rules and rigid in their expectations." - Mark Douglas, Trading in the Zone.

Never take the market for granted. They know it can beat them at any time, and they use that time to lay low not seek revenge.

How traders treat the market is critical to their success. The market is the driving force that moves most of the stocks out there. It is more than just that though. It is often the actual vehicle that is being traded. It also seems to have risen in many traders’ minds to be the ‘beast’ that needs to be conquered. It seems to come alive at times, and do exactly the opposite of what you ‘knew’ it would.

The quote at the top of the page is an excellent quote that all traders should keep close at hand. It is a topic that is not only appropriate for today's article, it can be the subject of a long lecture as well. “You must be rigid in your rules and flexible in your expectations. Most traders are flexible in their rules and rigid in their expectations.” That is from Mark Douglas, Trading in the Zone. It implies that you need to be flexible in what you think the market is doing. There is a fine line between flipping back and forth every time the wind blows, and sticking to a view until you are broke just to prove yourself right. Somewhere in between is where the professional trader lies.

When we trade, it is all about odds, not absolutes. Being ‘wrong’ is something that can only happen to an entire plan over a long time, not on any one trade. That is because we are only trying to get a certain percentage of trades right. Those ‘losses’ are really part of a winning plan.