I have received quite a few requests (to my suprise) to elaborate on a statement that I made to candletrader in a prior thread...So I figured I would reply to all with a thread... The satement; "It was only until I was able to shatter certain illusions manifested by our normal state of consciousness that I was able to lose myself and see this game for what it truly is..." Now before I elaborate a little on the statement I first want to say that 95% of the traders who will read this, will have an extremely difficult time understanding/accepting what I am going to say regarding the oneness of risk/reward... This is due mainly to the dualistic mode in which the human mind is locked into... The perfect way lacks difficulty; Save that it avoids picking and choosingâ¦ Let go of longing and aversion; And everything will be perfectly clearâ¦ A split hairs difference; And heaven and earth are set apartâ¦ If you want to realize the truth; Donât be for or againstâ¦ The illusion of right and wrong; Is truly a sickness of the mindâ¦ Neglecting to grasp the deeper meaning; Will serve only to trouble your minds serenityâ¦ That is taken from an ancient zenrin poem and I feel it pretty much sums up the ideal mind state of a trader... Mark Douglas said in his book, Trading in the Zone, "The best traders not only take the risk, they have also learned how to accept and embrace that risk" I have learned to truly accept and embrace risk by coming to two realizations... 1) The markets in nature are random, and therefore each and every trade has an uncertain outcome... 2) The duality of risk and reward, right and wrong, profit and loss, on a mico-level (trade to trade) are illusions, a manifestation of the mind and not reality... The culmination of these two realizations(along with many others) have enabled me to play this game (90% of the time) virtualy void of all emotions... due to the fact that I am no longer trying to attain anything from the markets (at least on a micro-level)... Now I have to say I have a very hard time putting the state of mind that I reach in my trading into words and this is only an etremely brief attempt to open some doors so to speak... First off before I get into this I DO NOT want to have a discussion on whether the markets are random or not, as many traders have different opinions...but I do not think many out there will argue that the result of any trade has an uncertain outcome... Once you accept that the outcome of each and every trade is uncertain, than you have to accept that each edge will have a natural and random distribution of wins and losses... Once you realize that there is a natural and random distribution of âwinsâ and âlossesâ for any given edge, you begin to realize that âwinsâ and âlossesâ on a micro level are nothing more than manifested absurditiesâ¦ They are abstract concepts belonging to the realm of thought, and as such they are relativeâ¦ So relative, so polar, so inseprable, so identical in their differences; that they are in reality the same thingâ¦ Let me attempt to explain this a little further; An edge is a collection of set-ups or opportunitiesâ¦ Being that the markets are random in nature, each opportunity has an uncertain outcomeâ¦ The uncertainty of the opportunity gives birth to risk and rewardâ¦ Without either one the opportunity would cease to existâ¦ Understand that they are not absolute experiences belonging to different categories, they are merely two different sides of the same reality; two extremes of a whole, which is opportunityâ¦ Once you can feel this polar relationship, you can feel the unity and oneness of the twoâ¦ Once you feel this oneness the two cease to exist anymore and the only thing that is left is the opportunityâ¦ Hence the buhdist paradox that emptiness is form and form is emptinessâ¦ Once you can feel the polarity between risk and reward, you realize how rediculous it is to attempt to attain one by abolishing the other... and all of a sudden their is no more longing and aversion, and all of a sudden all is clear and you are empty... and all of a sudden you are at complete peace with the outcome of your trades and you have complete faith in your edge... the only thing you attempt to do from this point on is to be in the ideal state of mind to recognize your oppurtunities and carry them out to the best of your ability... That is a very quick attempt to explain a very small portion of what I meant by that statement... I hope it can open some doors... PEACE and good trading, Commisso oh and happy new year!