How can this be a system
How can this be a system
Only the best traders cut their losses without reservation or hesitation when the market tells them the trade isn’t working. And only the best traders have an organized, systematic, money-management regimen for taking profits when the market goes in the direction of their trade
its reverse martingale
one point extra every win go back to origal 1 point steak if you lose ,after 5 strait wins you go back to one point just google reverse martingale ,or go to amazon get it for free or pay the 3$
thank you ted123
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you double up your bets after a win. 1-2-4-8-16 lots buy and sell all 31 lots at once.
Hawkeye uses a simpler version.
they identify strong trend first with high volume and then use position sizing in a ratio of 1-3-2-1 lots during the trend and exit all 7 lots towards the end of trend.this method they use only on daily trends.
90 percent traders almost do the same things and loose money end up in losses.
only 10% traders do different things like implementing money management strictly and take money from the looser 90% traders..
continuing in the face of loss or holding on to a trade with mounting losses is a sign of the incompetent trader.
A WORST traditional gambler at LAS VEGAS can loose 25 times in a row.
Now come back and apply this to trading.
Mark Dalton says
Let us assume 25+1 =26 losses in a row.in trading.
you risk such a way that nothing really upsets your capital even after all 26 losses.
How much risk per trade do we need to take?
Answer is 0.33%
after 26 losses,you stand to loose only 8% of your starting capital.
92% capital is still in your pocket.
you can not trade with conventional thinking.
They say risk 2% per trade.
you are not a good trader by any yardstick.most are dumb traders-impulsive traders.
you loose 26 times like the novice LAS VEGAS GAMBLER.
26 LOSSES EQUAL 52% OVERALL LOSS.if strictly you use 2 percent risk.
but we are human.ready to make mistakes.
use 3 pct risk and 26 times 3 pct =78% loss
with 22 pct capital in hand,after you lost 78 pct,can you trade properly to recover all the lost money?
Actually it is far worse.you plan 2% loss and end up with 3% or 5% loss.
assuming you are perfect with sticking to 2% loss per trade, you have only 48% capital left in hand
CAN YOU USE 48% CAPITAL TO GET BACK 52% LOST MONEY?
NEVER- NO WAY.
What is the hard core reality of trading?
instead of losing 52%, you end of losing 80% capital.
with 20% left over capital, can you recover lost 80% capital.
Next to impossible.
my humble Question to the real clever intelligent experienced traders
Gentlemen of the jury
please tell me some ways methods of how to trade with 0.33% risk per trade!!!!!!!!
Last edited by rvlvvel; 19-12-2016 at 03:31 AM.
Do we really know the beast of the market?
Three times the stoploss gets hit. trader leaves the pavillion.
market takes off without the trader.
it looked as though uptrend is finished.
after 4 hours solid uptrend resumes or begins afresh.
Those who cut losses fast are outside the market as they have no reentry plan.