Fundamental Truths and Principles of Consistency


We found ourselves discussing this in the Elite room today. It is so very important to get your head “in the game correctly” to be a consistently profitable trader. This is good to review daily before you begin to trade.

From “Trading in the Zone” by Mark Douglas
(A book EVERY trader should read)

Fundamental Truths

  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.

The 7 Principles of Consistency
1. I objectively identify my edges.
2. I pre-define the risk of every trade.
3. I completely accept the risk or I am wiling to let go of the trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me.
6. I continually monitor my susceptibility for making errors.
7. I understand the absolute necessity of these principles of consistent success, and therefore I NEVER VIOLATE THEM.


LOVE IT! SO AWDESOME! Everyone should print this off and mount it near their trading computers! Read it, love it, live it! :slight_smile:


I could not agree more!!!


I have those exact fundamental truths printed off and by my computer. Absolutely amazing book and if anyone hasn’t read it they won’t be fully prepared for the obstacles trading brings. It’s a must read for any trader!


Lori this is so awesome, i am going to read it everyday . I put a copy by my computer , on the refrigerator, on the mirror where i shave and one by my toilet well …you know. Thanks for the post


This is true of not only trading but life in general. thanks for this!