"I have no idea where price is going. Ever. I react to what happens. Prediction is for weathermen and psychics."
II.
THOU SHALT REACT, NOT HOPE
"When retail traders are wrong, they hope. When I'm wrong, I'm out instantly. When retail traders are right, they take profit. When I'm right, I add size."
III.
THOU SHALT EXPECT TO BE WRONG
"I enter trades expecting to be wrong. If I expect to lose, I cut fast. If I happen to win, it's a bonus I maximize."
IV.
THOU SHALT PLAN BEFORE ENTERING
"Before every trade: 'If wrong, I will ___.' 'If right, I will ___.' Execute regardless of what you think."
V.
THOU SHALT HAVE A RESPONSE FOR EVERY SCENARIO
"Price up? Plan. Price down? Plan. Price sideways? Plan. I don't need to predict because I've already decided my response."
VI.
THOU SHALT DETACH FROM DIRECTION
"Prediction creates attachment. Reaction creates detachment. I don't care which way. I just respond."
VII.
THOU SHALT NOT WORSHIP WIN RATE
"Some of the best traders I know are right 42% of the time. It literally doesn't matter."
VIII.
THOU SHALT NOT CONFUSE THINKING WITH DOING
"Thinking is for analysts. Doing is for traders."
IX.
THOU SHALT FIND EDGE IN MANAGEMENT
"My edge isn't prediction accuracy. My edge is what I do when I'm wrong."
X.
THOU SHALT EMBRACE THE BORING
"My entire system is built on NOT knowing. Prediction sounds valuable. Reaction sounds boring. But boring makes money."
XI.
THOU SHALT KILL THY EGO
"Prediction is ego. Reaction is money. I stopped trying to be right about direction 6 years ago."
XII.
THOU SHALT ASK THE RIGHT QUESTION
"Stop asking 'where is price going.' Start asking 'what will I do if price does X.' The second question is entirely in your control."
Before Every Trade
I am not predicting—I am reacting. Is this momentum or Fib retracement?