Traders who are successful are able to quickly correct their mistakes because they have a better understanding of the consequences of making decisions under uncertainty. They know that it’s not always necessary to take the trade that wasn’t meant to be in order to salvage something good from the situation.They know that sometimes good ideas don’t work out, since there is always some uncertainty involved. This makes it more likely that they will be wrong some of the time. Great traders always have a reason for putting a trade on, and they always have a reason for taking a trade off. The traders in the market focus on the reasons for their trades, rather than the short-term results of those trades.

If you don’t know what the future will bring and choose a trade with a certain outcome, you might be wrong. In many cases, it’s more likely that you’ll lose money when trading. What really matters in the end is the total amount of money that is won or lost, not whether you are right more often than wrong. Great traders are comfortable making decisions even if they know they might be wrong.

Great traders know that fear can sap our ability to make wise decisions, and can cause us to avoid taking chances. Fear can immobilize you when you need to act quickly and decisively to save yourself from danger – the deer-in-the-headlights syndrome. All great traders have mastered their fears and are able to act decisively under pressure.