I hate to break it to people reposting this but do you know the percentage of people who are actually successful? And I donโt mean like debt free with a decent job I mean do anything they want whenever they want without worry? The math lines up
โIโve missed more than 9,000 shotsโฆโ
โ Michael Jordan
He missed half the time. Great traders do too.
A losing trade isnโt failure.
A winning trade isnโt success.
A good trade is one that you would take again, regardless of the result.
Focus on what you can control. Process over outcome. Always.
Uncorrelated is the key here.
This is why I hate when people use the term confluence when looking at multiple factors that are essentially measuring the same thing. Doing so tells you nothing.
The variables must be independent. They must each be looking at something unique.
Personally I donโt believe the 1D, 4H, and 5m lining up mean jack shit.
Itโs about stacking small independent statistical advantages on top of each other.
Multiply anything by zero, and the result is always zeroโitโs called the Zero Property in math.
Trading works exactly the same way, but most traders never make this connection.
Itโs why even skilled traders fail despite obvious strengths.
Trading profitability depends on a handful of pillars:
โข Edge (Positive Expectancy)
โข Risk Management
โข Execution Discipline
โข Position Sizing
โข Psychology & Emotional Control
These pillars arenโt additiveโtheyโre multiplicative.
If any single pillar of your trading process is ineffective or completely missing (equals zero), the entire strategy collapsesโno matter how strong the other pillars are.
This explains why traders with genuine edges and good sizing still fail:
If your execution discipline is zero (meaning you canโt consistently follow your own rules), your results inevitably collapse to zero.
Likewise, if you have excellent discipline and flawless risk managementโbut no true edgeโyouโll slowly bleed capital to randomness and transaction costs, ultimately returning your results to zero.
Every component must function at least at a baseline effectiveness.
Neglecting or failing to develop any single pillar neutralizes your entire trading strategy.
Seeing this clearly reveals exactly where your weaknesses lie, helping you focus your efforts where theyโre truly needed, and shifting you toward consistent profitability.
Remember this thread in which I predicted the down move and support that would send the S&P 500 back up?
Now look what we have here on the monthly๐
That's why even if you're a day trader, you need to keep your eye on the macro charts too!
@Trader_Dante That was an incredible execution, Tom. Beautiful call on the low ๐. Would love to see this one added to the Playbook when you get the chance. Always learn a ton from those posts! ๐๐ผ๐