Risk and reward & % win rates
Yesterday I had one of those "aha" moments again. It had to do everything with entry triggers, not in terms of mechanical triggers but purely on a
psychological level.
Systems and methods often include multiple variables. When all these variables are aligned it will higher the probability of a win. I am still only little over one year into Forex trading but the one thing I noticed is that I often repeatedly ask myself if a specific trade is either going to win or not.
I check multiple momentum and confluence levels on "x" pair among with its correlations.
Since yesterday I seriously began to think about another approach towards entry triggers that would be more efficient and mind easing. The below is often repeated, yet often being taking for granted.
Do NOT have the urge of being right
All these variables from your system or methodology will always include a good chunk of random outcome.
Instead of repeatedly asking yourself if the next trade will be right, simply focus on minimizing risks. That's all there is to it, minimizing risks.
It does not matter if you are wrong or right, heck, people with a 40% win can still generate sick amounts when controlling risk in a proper way.
I made a small video regarding this. Sorry for my poor English in this video. I hope this will be useful to some of you!
Yesterday I had one of those "aha" moments again. It had to do everything with entry triggers, not in terms of mechanical triggers but purely on a
psychological level.
Systems and methods often include multiple variables. When all these variables are aligned it will higher the probability of a win. I am still only little over one year into Forex trading but the one thing I noticed is that I often repeatedly ask myself if a specific trade is either going to win or not.
I check multiple momentum and confluence levels on "x" pair among with its correlations.
Since yesterday I seriously began to think about another approach towards entry triggers that would be more efficient and mind easing. The below is often repeated, yet often being taking for granted.
Do NOT have the urge of being right
All these variables from your system or methodology will always include a good chunk of random outcome.
Instead of repeatedly asking yourself if the next trade will be right, simply focus on minimizing risks. That's all there is to it, minimizing risks.
It does not matter if you are wrong or right, heck, people with a 40% win can still generate sick amounts when controlling risk in a proper way.
I made a small video regarding this. Sorry for my poor English in this video. I hope this will be useful to some of you!
Inserted Video