The power of statistics is something we all use in life. In life, we make decisions based on our past experiences. Our mind is like a powerful computer and usually, it is analyzing risk to reward factors all day long. Thousands of subconscious thoughts flowing in the background to help us make a “sound decision”. Some people make decisions that make them rich, while others make decisions to be poor.
The first time I realized this was at the beginning of my journey to financial freedom. I looked at every single belief involving money, wealth, and freedom until I was crystal clear. I then asked myself, ” Why do I believe this ? Where did this belief come from? Is this based on fact or through observation? ”
What I realized is I wanted to make a lot of money but was operating on information from people who have never made tons of money. In terms of trading, it is the exact same thing.
Are you making decisions based on your observations/emotions?
Are you making decisions based on information that was never proven valid?
Are you. making decisions based on concepts that have never worked in the first place?
It is okay if you are. The reality is most people do this on autopilot every day. It is considered “normal”. Now that you know about this, it is now your responsibility to make a change. So here is how you can do that fast.
Step 1 : Identify the exact rules in your trading strategy
Step 2. : Identify how successful the strategy has performed over the last few years
Step 3: Decipher if those results are what you are comfortable with and align with your goals.