Simplicity is the Ultimate Sophistication.
- Joined Jan 2017 | Status: Member | 533 Posts
Humans are naturally hardwired to avoid and detest uncertainty.
Forex gambling? 83 replies
Is Forex really gambling 25 replies
Trading vs gambling 97 replies
Trading IS Gambling... 46 replies
trading or gambling? 14 replies
Disliked{quote} He trade information. Confidential information as all big sharks. Anyway if fundamentals are the base why AUD passed from new safe currency to weak in one month? All is relative. Sometimes fundamentals helps but normally is a chess play for manipulate market. Last months gbp movements are a good example. For any reason people call Brexit drama or the new world circus...Ignored
DislikedUntil the day you find a system with a good win rate and a good risk reward ratio leading you to an almost zero risk of ruin you (we) will be gambling but without knowing it ! Take care and trade well !Ignored
Disliked... The sooner traders realise risk reward is as mythical as unicorns,the sooner they can adopt a better strategy.Ignored
Disliked{quote} Just note that risk/reward is not a strategy in itself, it indeed confirms that the strategy you use to enter exit provides good returns or not, but even if not, you can still be profitable, guess how ? By having a good Win ratio. What counts at the end ? Having a profitable account over the long term, and how do you achieve that ? By having a good strategy, edge, trading technique, unicorns on your chart, anything you want. But at the end, when you calculate your win ratio and your risk-reward, either you have one of both which is very...Ignored
Disliked{quote} It isn't a strategy however considered one by so many retail traders. To overcome statistical win-loss ratios they feel that risk reward ensures they swallow enough losses to produce a profit. The problem is you cannot know beforehand where price will likely get stuck, how long it might get stuck there for, and if the price will then retrace enough to take you out. So you can calculate a win-loss ratio but you have no guarantees it will be met so the calculation is flawed and ultimately inaccurate. Can you show your risk-reward has been...Ignored
QuoteDislikedSo, it's the accuracy or the quality of your trading system that will dictate your Win Ratio not the other way around! And from that, you will need a minimal statistical win rate to know if your system is viable long term, and these are just mathematics, not my opinion.
Disliked{quote} If it's considered by some as a strategy, then sorry for them, they are wrong. I understand your point, of course that nobody knows in advance what the price will do. My point is that when you trade, you make assumptions, or your system tell you where to enter, and then you make assumptions about where you would like the price to go for a win but also where it might go for a loss. Then assuming that you will respect those levels, you know exactly what is the risk and the potential reward on that trade and I don't see what is wrong with that....Ignored
Disliked{quote} Assumption is snake oil when it comes to this market. Making an assumption where price will go and accepting it doesn't translate into knowing exactly what your risk reward is. All that gives you is a self sense of conviction which does nothing to produce the best possible outcome. Here is an example that will play out time and time again for every trader. You buy at 1.1234 with a stop at 1.1215 and a target at 1.1265. Price goes to 11241 then drops back down to hit your stop. Is the problem the system or the trade management? According...Ignored
Disliked{quote} It seems that you want to have the last word on it, it's okay and no worries. Take care and trade well.Ignored