Consistent Trader: 1. I objectively identify my edges. 2. I predefine the risk of every trade. 3.

I completely accept the risk or I am willing to let go of the trade. 4. I act on my edges without reservation or hesitation. 5. I pay myself as the market makes money available to me. 6. I continually monitor my susceptibility for making errors. 7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.

Five Fundamental Truths for a probabilistic mind-set: 1. Anything can happen. 2. You dont 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.

Create a mental structure in which you eliminate the effects of fear and recklessness from your trading.

Instead of thinking like a successful pro trader, most traders think about how they can make more money by learning about the market. Its almost impossible not to fall into this trap.

Consistency is the key. Its all about attitude, state of mind, the zone. NO FEAR. Loss is part of the thing.

Perceive the market as an endless stream of opportunities to enter and exit trades, without self-criticism and regret.

Definition of a winning attitude: a positive expectation of your efforts with an acceptance that whatever results you get are a perfect reflection of your level of development and what you need to learn to do better.

The best traders stay in the flow because they dont try to get anything from the market: they simply make themselves available so they can take advantage of whatever the market is offering at any given moment.

The threat of pain generates fear, and fear is the source of 95 percent of the errors you are likely to make.

The boy and the dog story. Because hes been bitten by a dog in his first encounter with dogs, doesnt mean hes going to be bitten by a dog every time he encounters one. In the same way, because you lost in a trade, doesnt mean you are going to lose in the next one.

Each trade is unique, and your fear of lose is irrational, has no fundament. Each trade is simply an edge with a probable outcome, and statistically speaking independent of every other trade.

Learn to make yourself available to take advantages of whatever

opportunities the market may offer in any given moment. Any expectation about the markets behavior that is specific, well-defined or rigid instead of being neutral and open-ended is unrealistic and potentially damaging. When we believe in an outcome, there is an implied acceptance that we dont know what the outcome will be. When we accept in advance of an event that we dont know how it will turn out, that acceptance has the effect of keeping our expectations neutral and open-ended. If we are going to feel great if the market does what we expect it to do, or feel horrible if it doesnt, then we are not exactly neutral or open-minded. NEUTRALIZE THE EMOTIONAL RISK OF TRADING. DE-ACTIVATE BELIEFS. To trade without fear, you have to create a new belief ad de-activate the conflicting ones. Monitor yourself. When you notice that you are not focused on your objective or on the incremental steps to accomplish your objectives, choose to redirect your thoughts, words, or actions in a way that is consistent with what you are trying to accomplish. Keep redirecting as often as necessary.

Richard C. Haber