20 Mark Douglas Quotes on Trading Psychology
When it comes to Trader Psychology, I always point new traders in the direction of Mark Douglas.
His books, most famously “Trading in The Zone” are staples in the industry helping traders gain the foundation they need to develop the proper trading mindset.
While there are too many amazing lessons to present in this post, here are 20 of my favorite Mark Douglas quotes of all time.
These lessons helped me to become a consistently profitable trader and if you really take them to heart, study them, & apply them to your own trading, they will help you reach your trading goals as well.
Mark Douglas Quotes on Trading Psychology
1 “If your goal is to trade like a professional and be a consistent winner, then you must start from the premise that the solutions are in your mind and not in the market.” – Mark Douglas
2. “When you achieve complete acceptance of the uncertainty of each edge and the uniqueness of each moment, your frustration with trading will end.” – Mark Douglas
3. “When you genuinely accept the risks, you will be at peace with any outcome.” – Mark Douglas
“Five Fundamental Truths:
1. Anything can happen.
2. You don’t need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of variables that define an edge.
4. An edge is nothing more than an indication of a higher probability of one thing happening over another.
5. Every moment in the market is unique.”
– Mark Douglas
6. “If you can learn to create a state of mind that is not affected by the market’s behavior, the struggle will cease to exist.” – Mark Douglas
7. “The consistency you seek is in your mind, not in the markets.” – Mark Douglas
8. “Remember, the best traders think in a number of unique ways. They have acquired a mental structure that allows them to trade without fear and, at the same time, keeps them from becoming reckless and committing fear-based errors.” – Mark Douglas
9. “If you asked me to distill trading down to its simplest form, I would say that it is a pattern recognition numbers game. We use market analysis to identify patterns, define the risk, and determine when to take profits. The trade either works or it doesn’t.” – Mark Douglas
10. “Why do casinos make consistent money on an event that has a random outcome? Because they know that over a series of events, the odds are in their favor. They also know that to realize the benefits of the favorable odds, they have to participate in every event.” – Mark Douglas
11. “The hard, cold reality of trading is that every trade has an uncertain outcome.” – Mark Douglas
12. “What separates the “consistently great” athletes and performers from everyone else is their distinct lack of fear of making a mistake.” – Mark Douglas
13. “Rarely will the typical trader stay with his system beyond two or three losses in a row, and taking two or three losses in a row is a very common occurence for most trading systems.” – Mark Douglas
14. “When I put on a trade, all I expect is that something will happen.” – Mark Douglas
15. “No man ever reached to excellence in any one art or profession without having passed through the slow and painful process of study and preparation.” – Mark Douglas
16. “Putting on a winning trade or even a series of winning trades requires absolutely no skill. On the other hand, creating consistent results and being able to keep what we’ve created does require skill. Making money consistently is a by-product of acquiring and mastering mental skills.” – Mark Douglas
17. “Good market analysis can certainly contribute to and play a supporting role in one’s success, but it doesn’t deserve the attention and importance most traders mistakenly attach to it.” – Mark Douglas
“Trading rule 1: Predefine what a loss is in every potential trade.
Trading rule 2: Execute your losing trades immediately upon perception that they exist.
By predefining and cutting your losses short, you are making yourself available to learn the
best possible way to let your profits grow.” – Mark Douglas
19. “The typical trader doesn’t predefine his risk, cut his losses, or systematically take profits because the typical trader doesn’t believe it’s necessary. The only reason why he would believe it isn’t necessary is that he believes he already knows what’s going to happen next, based on what he perceives is happening in any given “now moment.”” – Mark Douglas
20. “It’s the ability to believe in the unpredictability of the game at the micro level and simultaneously believe in the predictability of the game at the macro level that makes the casino and the professional gambler effective and successful at what they do.” – Mark Douglas