Emotion and Randomness

Mark Douglas:

“Have you ever played slots? When you didn’t hit the jackpot did you think of yourself as a loser?

Participant:

“No.”

Mark Douglas:

“Correct. Because you pushed the button with the belief that on any given spin there would be a random outcome”

“Have you ever thought of yourself as a loser after a losing trade?”

Participant:

“Yes.”

Mark Douglas:

“And the reason for that is because you didn’t believe that it was a random outcome. But the truth is that any single outcome from any system or trading methodology is random. When you think about it that way everything is different. You won’t have the same emotional problems”