How do you handle randomness?

FTC Community TeamStaff93 views

A large share of any trade's outcome is random — noise, timing, luck. Accepting that is psychologically difficult because it removes the sense of control. Yet the acceptance is where peace lives.

How do you handle randomness? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your relationship with randomness?

  • how you cope with outcomes you didn't earn
  • how it feels to lose a well-planned trade
  • the acceptance that changed your trading
How do you handle randomness? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide formalises the randomness.

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