This is a concept that is hard for beginners to understand. “What do you mean you don’t predict? Are you not trying to predict the price?” Price prediction is oversimplification of any type of trading. As in the famous words of Yogi Berra, “’It’s tough to make predictions, especially about the future’.” Obviously, this is because we can’t know the future. Day traders prepare for and react to price action based on their odds. They’ve graduated beyond the simplistic way of thinking that an event is always a 50/50 (it’s not). Yes, prices can only go up or down, and it’s a 50/50 chance but what leads to the rising prices or declining price are not 50/50. For instance, at the start of a recession, where the markets are about to begin a new bear market, the odds of price reaching new highs in the near-term are less than 50% (obviously).