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If you haven't made it yet, what makes you think you will? 212 replies

Congrats! You just joined 5% or less

  • #61
  • Jul 31, 2011 3:33am Jul 31, 2011 3:33am
Quoting Chicky
Why do more than 95% traders fail?

1. Many inexperienced traders do not try to maintain capacity of absorbing 10 to 12 or maybe few more consecutive losses. If trading edge is the probabiility of more positive outcomes in long-run, one should be ready to accept a series of negative outcomes. Despite knowing how my edge works, I still feel depressed after getting more than two losses in a row - human nature. I am damn sure if at some point of time I hit a series of five or six losses, no one would visit my already somewhat deserted...
Nice one.
Hero calls followed by margin calls...
  • #62
  • Jul 31, 2011 4:23am Jul 31, 2011 4:23am
Sorry, but your math is incorrect. 1% a day times 150 trading days as you suggested, does not amount to 150% account increase. Take any amount you like and multiply it 150 times with 1.01 and you'll end up with about 4.5 times your initial investment.
  • #63
  • Jul 31, 2011 4:26am Jul 31, 2011 4:26am
Quoting modanova
Sorry, but your math is incorrect. 1% a day times 150 trading days as you suggested, does not amount to 150% account increase. Take any amount you like and multiply it 150 times with 1.01 and you'll end up with about 4.5 times your initial investment.
you're right,but ig uess the chicky referred to a fix 1 % daily on the net deposit
Hero calls followed by margin calls...
  • #64
  • Jul 31, 2011 4:27am Jul 31, 2011 4:27am
I'd love to learn a way to get past the human emotions after just two losses
  • #65
  • Jul 31, 2011 4:40am Jul 31, 2011 4:40am
Quoting PhAnTi'
you're right,but ig uess the chicky referred to a fix 1 % daily on the net deposit
I quote:

"1% a day and 365 days a year makes it 365% a year."

Either you talk in terms of daily return or annual return, but you don't take an annual return and divide it by the amount of days you traded and then say this is how much you made each day. It's mathematically incorrect and confuses new traders who are interested to learn about compounding.
  • #66
  • Jul 31, 2011 10:04am Jul 31, 2011 10:04am
Quoting lUnknown
I'd love to learn a way to get past the human emotions after just two losses
Decrease your leverage by a factor of 10. If you are profitable, increase it by 10% until you find your real threshold of pain.
  • #67
  • Jul 31, 2011 12:08pm Jul 31, 2011 12:08pm
Quoting Sauron
Decrease your leverage by a factor of 10. If you are profitable, increase it by 10% until you find your real threshold of pain.
There are many ways to manage risk. However my favorite is this one while using "Winning on Balance Method" (i.e. 1% risk/reward on each trade regardless of number of pips involved):

1. Check performance over a block of 100 trades, not before not after.
2. Only take good trades
3. If my method is good enough to produce 60 winners out of every block of 100 trades, that is 20% profit.
4. But the most important element is that one should be ready for 40 consecutive losses and also for 60 consecutive winners............ you never know.

ps - I have a five year trading plan and therefore can sit without a trade for weeks.
The Thief of Wall Street
  • #68
  • Last Post: Jul 31, 2011 12:11pm Jul 31, 2011 12:11pm
Quoting Chicky
There are many ways to manage risk. However my favorite is this one while using "Winning on Balance Method" (i.e. 1% risk/reward on each trade regardless of number of pips involved):

1. Check performance over a block of 100 trades, not before not after.
2. Only take good trades
3. If my method is good enough to produce 60 winners out of every block of 100 trades, that is 20% profit.
4. But the most important element is that one should be ready for 40 consecutive losses and also for 60 consecutive winners............ you never know....
I am,
Hero calls followed by margin calls...
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