Trading requires that you not necessarily control or understand the market, but instead react to it and accept what it does. We often try to make sense out of life and look for cause and effect in events. Most of us learn to think logically as children. We extend this logical education through religion, philosophy, science, or other ways by believing there is an inner logic and order to the universe. Interestingly enough, our precept of logic and order is not based on logic but on belief, which is outside the realm of logic.

We employ the same rationale of logic and order to trading but find it impossible to understand why the market moves in certain ways. It is not always possible to rationalize or understand the mind of the market because it does not always act in a rational manner. We have been taught that investment decisions should always be based on rational and prudent behavior. But when investors begin to make or lose money we often see emotion takes precedence over rationality.

Others find trading agonizing because they are not in control of the situation. Many people are accustomed to, or need to control the environment they live and work in. Although trading demands total self-control of your thoughts and emotions, it also demands that you accept and surrender yourself to the flow of the outside power of the market. You cannot impose your logic and beliefs on the market, but instead must try to understand or appreciate the underlying forces which drive the market-emotion and rationality. We may not always understand the market, because the market is a reflection of peoples' emotions which cannot always be comprehended. You must learn to flow with the market, as opposed to changing or controlling it.

Markets may seem irrational, wrong, incorrectly priced, unfair, and a host of other incomprehensible things. But you must accept the fact that the market is more powerful than you or any group or government. If you cannot accept this fact, you should not trade.

The market battlefield is littered with people who felt they could manipulate or control the market. These people are invariably unsuccessful or ruined in their attempt to control the market, or belief they were right and the market was wrong. You must surrender your ego and feelings to a more powerful entity-the market.