So why would this work for me, and not everybody?

One of the things I've struggled with during this entire trading experience is why would it work for me, and not every other investor in the market? After all, if every investor has the same information, and there is a process in which consistently brings in profits, why wouldn't everyone utilize the same process?

So I've come up with a couple of possible reasons:

1) Looking for small profits. One of the aspects of my trading when compared with institutional traders is that I'm looking to make a small profit off of very small movements in the market (the smallest the market allows) So this may seem insignificant, but actually, the math proves this to be important.

Let me explain...If I'm looking to buy long or sell short at the smallest possible movement, there is a 100% chance that it will move, either up or down, by that smallest possible movement (called a tick or pip). So with that, we can also calculate that regardless if we buy long, or sell short, we have a 50% chance of picking the right movement, assuming (which we can safely do) that the market won't shut down forever and will move.

So with that logic, any software or knowledge that I possess which helps me predict future movements of the market increases my chances from a 50% base. So in essence, as long as the software or knowledge that I'm using give me ANY indication of future movements, I ALWAYS have a better than 50% chance of making the right trade.

So why doesn't this work for other investors? Most other investors trade at higher market movements. They are looking for higher profits, and don't trade little trades all day. Rather, they make big investments and invest in big movements. So taking that knowledge, if an investor is betting on a 15 tick movement, the probability of the market moving up or down 15 ticks is not 100% (the market may not every get to that point...especially in a short time frame)...maybe it's only 70%. That would mean that your probability, if you flipped a coin and chose a market movement of 15 ticks, would be 35%. So that would mean that, even with great predictive software, you may never get above 50% probability of making the right trade.

Ending thought...small movements, small profits pay big in the end.