I’m going to share with you the secret to trading the market. The “holy grail” to trading is a thorough understanding of the daily timeframe, position sizing, probabilities (risk:reward), patience/discipline, access to capital, and a trading system that you become fully proficient in that exploits all the factors mentioned above to give you the so-called market edge. We have become fixated to overtrade, over-leverage, and overanalyze the market in a false belief that the more we trade, the more we make. We soon start to come to the realization that this is far from the truth. We all fund a $100 account to start and should risk $1 max when we see an opportunity to make +$2 in a high probability setup. But $2 doesn’t do it for us and we begin to set ourselves up for failure. Look at the bigger picture, if you had $100,000 in capital that $2 return becomes a $2,000 return with the same setup. Guess what, if you only traded two successful high-probability setups in a month that still makes you a profitable trader. The problem is that two trades in a month with a $100 account won’t cut it. Sitting on the sidelines warming up the bench in this game is a victory in itself, it means you have the patience and discipline to follow your trading plan. However, we are not wire to think like this and most of us will not listen to this sound advice and proceed to be humbled by the market anyway.
- Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,486 Posts
MT4/MT5 EAs/Indicators/Alerts coder