The 5 Fundamental Truths of Trading:

1. Anything can happen.

All it takes is one (whale) trader with enough capital to move the market. Accepting
this truth means that we never believe we know what will happen next (i.e. the
outcome of this set up) and therefore we will not feel any psychological pain if the
market acts different to what we expect.

2. You don’t need to know what is going to happen next to make money.

All you need to know is that your system gives you an edge over a large number of
trades and that if you act on your edge enough times you will get results that closely
reflect statistical edge. You don’t need to worry about this particular trade just keep
acting on your edge and you will win in the long run.

3. There is a random distribution between wins and losses for any given set of
variables that define an edge.

If your system gives you a 60% accuracy rate, you may expect that out of the next
10 trades, 6 will be winners and 4 will be losers, but you don’t know the sequence of
winners and losers. This truth makes trading a probability or numbers game.

When you really believe that trading is simply a probability game, concepts like right
and wrong or win and lose no longer have the same significance. You simply keep
acting on your edge and don’t feel attached to any one trade.

4. An edge is nothing more than an indication of a higher probability of one thing

happening over another.

Creating consistency requires that you completely accept that trading isn't about
hoping, wondering, or gathering evidence one way or the other to determine if the
next trade is going to work. The only evidence you need to gather is whether the
variables you use to define an edge are present at any given moment. If you use
other factors to judge whether to enter a particular trade you are adding random
variables that you have not tested and which change your odds.

5. Every moment in the market is unique.

"Unique" means not like anything else that exists or has ever existed. As much as
we may understand the concept of uniqueness, our minds don't deal with it very well
on a practical level. As we have already discussed, our minds are hardwired to
automatically associate anything in the exterior environment to anything similar that
is already inside of us in the form of a memory, belief, or attitude.
This makes us think “I’ve seen this before, and I know what will happen.” This is
wrong and we should always remember the first truth that “Anything can happen in
the market.”

Below are the 7 Principles which we can use as affirmations and always check that
we are complying with. As long as we stick to these rules (and use the
WeTradeWaves system as our edge) we will be consistently successful.

Repeat them often and live by them.

The 7 Principles of Consistency:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing 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.