December 4, 2024

Today's Reading Share

30. The way the market appears on the chart at any moment may look completely identical to how it appeared at some previous moment. The geometric measurements and mathematical calculations used to determine each advantage may be exactly the same as the methods used to calculate the next advantage; however, the actual consistency of the market itself at different moments will never be the same.

For the current behavior pattern to be exactly the same as that of a previous moment, every trader who participated in the market at that time must now be present; furthermore, during the same period, every trader must interact with other traders in exactly the same way as before to yield identical results, and the probability of this scenario occurring is almost zero.

31. The market conditions of every form in the “present,” every behavior pattern in the “present,” and every advantage in the “present” are always unique situations, with completely independent outcomes from one another.

However, understanding the nature of uncertainty and probability does not equate to being able to operate effectively from a probabilistic perspective.

32. The mechanism of avoiding pain merely protects us from the conflicting information that our expectations and environment present.

33. We must adhere to the rules and be flexible with our expectations. However, the typical actions of traders are likely just the opposite, being flexible with the rules while rigidly holding on to their expectations. In practice, the more one insists on their expectations, the more likely they are to distort, violate, or break their own rules.