Every time you take a trade, you are picking a fight with someone.

When you buy, you are in conflict with the other side who’s selling. You’re saying he’s wrong, and he’s saying you’re wrong… and the market will ultimately decide which of you is right.

Many traders end up losing because they don’t know who they’re fighting against; They randomly pick fights with everyone and wonder why they can’t stay profitable.

Most likely, they’ve been fighting against the institutions that are bigger, faster, and are better informed; These are *not* the people you want to pit yourself against.

The trick, then, is to pick your fights carefully.

If you don’t have some idea about the capability and motivation of the other side of the trade, it’s probably a good idea to stay out of the ring.