Amateurs think trading in profits and losses;
Gurus think in probability

When investors first started trading, they usually pay most of their attention on profit and loss. They sometimes even think that it is a must to win and gain profit in every single trade they take. However, the truth is that nothing is 100% certain in the world of trading. It is the uncertainty that generates risks and hence rewards. Top traders understand that the key to stay in the game for long term is to think in probability.

 

Understanding that market has some sort of randomness in between winning and losing trades

If trading is all about probability and uncertainty, then it is inevitable that in trading there is some sort of randomness. Sometimes there are winners; sometimes losers. The key is to accept every risk and hence the outcome during trading. The advantage is that traders are less attached to the results and they will be equipped with a better trading psychology.

 

Without absolute certainty, traders have to respond to every unique situation

In fact, besides randomness, there also exists uniqueness in trading. Technical analysis assumes traders are irrational, and hence there exist a certain degree of market inefficiency. Yet, we cannot assume that something that happened in the past will bring the same result if it happens again today.

 

Paradox of Technical Analysis to seek some portion of certainty while it will never be 100% certain

Therefore, it is clear that Technical Analysis is not the Holy Grail but instead a tool to help traders assessing the probability. Traders should learn that they must firstly accept the uniqueness and randomness in trading; and then with proper trading strategies and risk/money management, they can be consistently profitable in the long run.