I feel that old information like the risk/reward ratio should be regurgitated, as with bodybuilders which needs new inspiration for going to the gym and really push themselves leaving it yet again to be a habit.
I also feel that a lot of traders in here believe the correct risk/reward ratio is there for making you money. That is true to some distinct but it does something more importantly, it is keeping you away from loosing money. How is that?
You are doing the exact opposite from what beginners do!
We all know beginners will get excited with a small winning trade and take it. These babies will have problems with a loosing trade and will hope for a turn back on price. Leaving an account down more than 50% and they receives a margin call which is very common in Forex, and it happens more often than we would like to know. See, that is totally the opposite from beginners killing their account!
A real trader doesn’t laugh about people killing their accounts; frankly we think it’s sad, because we know that there is enough money for everyone in here as long as the money/price circulates. And where does the price circulate more than in forex?
It’s like bodybuilders that are interested in getting big in a very short period of time and then they will rupture or dislocate something, leaving them out of the gym for months… If they are lucky enough to come back for another try they will probably do it again…. Thank good that in the market it is just money and we can buy our self into the game again without being physically harmed. Imagine if someone came to your house and punched you in the face with a bat every time you had a bigger loss than win (or maybe it would helped you J). I bet you wouldn’t look pretty doh.
Do you know why traders fail?
The people which are attracted to this marked are all gamblers, we like money and lots of it. We are not disciplined and hate to lose money. We just can’t see how loosing money can give you more. As you have to break some eggs to make omelette. You have to use some to make some. Use SOME, not all. I would rather take a loosing trade or break even than 99% of my profit level, which I have calculated and prepeared for several reasons.
So if you are on the loosing side this year you have to get a grip and do some homework. Get your method together with correct risk/reward and trade with a smaller account. When you are profitable or disciplined you can continue trading bigger (I know you should not trade bigger if you are in zero, but I reckon I can’t hold you out of the gym anyways).
But please, don’t try to get big fast, you will kill yourself.
I will bet money on, that you are not 100% disciplined if you are in zero or minus, and that is definitely a variable you can do something with!
Remember that 1:3 ratio is for beginners and 1:4-1:5 for professionals that like too puzzle. I have today 2 systems that have generated 47% and 53% winning trades (1:4,5 & 1:5)on the last 100 trades. So there is no reason for you not to make a method like that. I am just an average C student...
Being entirely honest with yourself is a good exercise
-Sigmund Freud
I also feel that a lot of traders in here believe the correct risk/reward ratio is there for making you money. That is true to some distinct but it does something more importantly, it is keeping you away from loosing money. How is that?
You are doing the exact opposite from what beginners do!
We all know beginners will get excited with a small winning trade and take it. These babies will have problems with a loosing trade and will hope for a turn back on price. Leaving an account down more than 50% and they receives a margin call which is very common in Forex, and it happens more often than we would like to know. See, that is totally the opposite from beginners killing their account!
A real trader doesn’t laugh about people killing their accounts; frankly we think it’s sad, because we know that there is enough money for everyone in here as long as the money/price circulates. And where does the price circulate more than in forex?
It’s like bodybuilders that are interested in getting big in a very short period of time and then they will rupture or dislocate something, leaving them out of the gym for months… If they are lucky enough to come back for another try they will probably do it again…. Thank good that in the market it is just money and we can buy our self into the game again without being physically harmed. Imagine if someone came to your house and punched you in the face with a bat every time you had a bigger loss than win (or maybe it would helped you J). I bet you wouldn’t look pretty doh.
Do you know why traders fail?
The people which are attracted to this marked are all gamblers, we like money and lots of it. We are not disciplined and hate to lose money. We just can’t see how loosing money can give you more. As you have to break some eggs to make omelette. You have to use some to make some. Use SOME, not all. I would rather take a loosing trade or break even than 99% of my profit level, which I have calculated and prepeared for several reasons.
So if you are on the loosing side this year you have to get a grip and do some homework. Get your method together with correct risk/reward and trade with a smaller account. When you are profitable or disciplined you can continue trading bigger (I know you should not trade bigger if you are in zero, but I reckon I can’t hold you out of the gym anyways).
But please, don’t try to get big fast, you will kill yourself.
I will bet money on, that you are not 100% disciplined if you are in zero or minus, and that is definitely a variable you can do something with!
Remember that 1:3 ratio is for beginners and 1:4-1:5 for professionals that like too puzzle. I have today 2 systems that have generated 47% and 53% winning trades (1:4,5 & 1:5)on the last 100 trades. So there is no reason for you not to make a method like that. I am just an average C student...
Being entirely honest with yourself is a good exercise
-Sigmund Freud
