SirFrancis
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You might very well be right Hoggums, but lets give the chap some encouragement shall we?
I hope Mr E listens to the good advice he has been give and has the humility to put it into practise. Good luck.
You might very well be right Hoggums, but lets give the chap some encouragement shall we?
I hope Mr E listens to the good advice he has been give and has the humility to put it into practise. Good luck.
new_trader
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Maybe, maybe not. Mr E isn't thinking of learning to play the piano or asking a woman out on a date. In these types of situations, encouragement is appropriate. Now think of new recruits entering the military. In times of combat, lack of discipline, mistakes and incompetence could get you and others killed....dead...the end..
Do you really want a soft Drill Sergeant to be assigned the duty of initiating new recruits? One who simply encourages them to clean their weapons and obey orders?
Hoggums
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unfortunately if you read Mr E's replies you can already see the classic beginner "I know better than you lot" syndrome and he's dismissing most of the comments coming his way...
Thank you francis and mr beef,
I have taken on board some of the advice - but i'll be staying with 3-5% as the risk is constant if I keep using it and i'm not going to waste my time trading for 1%/trade. Perhaps I got lucky on the size of some of my winners, but overall I don't believe there is luck in my method. It's a mathematical probability that if I bet on a coin flip and win twice as much as I lose on a successful flip then i'm bound to be profitable. Perhaps this is an aspect some may fail to realise and perceive that their "edge" over the market is far greater than 50% by the use of indicators and the like.
I have taken on board some of the advice - but i'll be staying with 3-5% as the risk is constant if I keep using it and i'm not going to waste my time trading for 1%/trade. Perhaps I got lucky on the size of some of my winners, but overall I don't believe there is luck in my method. It's a mathematical probability that if I bet on a coin flip and win twice as much as I lose on a successful flip then i'm bound to be profitable. Perhaps this is an aspect some may fail to realise and perceive that their "edge" over the market is far greater than 50% by the use of indicators and the like.
I learnt from the others on this board that its not as simple as flipin a coin. Lets say you flip a coin to decide if you shall buy or sell. To make any money you would have to let the winners be bigger than the losers. That means its not longer 50% chance of winning a trade. Maybe more in the level of 30-40%.
///Victor
I learnt from the others on this board that its not as simple as flipin a coin. Lets say you flip a coin to decide if you shall buy or sell. To make any money you would have to let the winners be bigger than the losers. That means its not longer 50% chance of winning a trade. Maybe more in the level of 30-40%.
///Victor
How are you getting 30-40% and dare I ask if you've tried it? Even some of the most successful traders have a 30% or lower success rate so it's not such an issue if one runs below expectation.
shadowninja
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That's not probability. That's risk vs reward.
In fact the mathematical probability that if you bet on a coin flip and win is twice as much as you lose on a successful flip would be 1.
Maybe what you meant was that the probability of your method winning is 50% and the reward:risk ratio is 2:1. Which is nice.
The problem is that how do you know if 10 losses in a row (with 2 wins in the middle) is a spot of bad luck or a sign that your system is not actually working? That's why you keep the percentage risk to 1-2% or even demo it for 3 months.
Surely unless you are 100% proficient and never ever have a losing trade then it would be prudent to have a stop correct?
As such would not the function of a stop be to get you out of a trade if the trade is not working the way you believe it should be regardless of how proficient you are? Or in other, simpler terms, when you admit that you were "wrong" on that trade?
I don't see any logic at all in choosing an arbitrary stop based on how proficient you are. Surely it would be more logical to choose a stop based on the unfolding market conditions, your reasoning for being in the trade and a point at which conditions indicate the trade is not working?
Unless of course you are one of the lucky few who know everything in advance and then the question becomes why are you using a stop at all? Why not simply not take the trade if you know it is going to be a loser? Or better yet, trade in the opposite direction.
Cheers,
PKFFW
new_trader
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proficient
adjective
1. having or showing knowledge and skill and aptitude
2. of or relating to technique or proficiency in a practical skill
Of course this doesn't apply if you make trades based on guesses.
Ok then, I'm assuming that by "stops are a function of proficiency" you mean "stops are a function of how good you are at making trades" or something to that effect. Is that correct?
So do the best traders use a stop of a single tick/pip simply because they are such good traders? Or do they choose a stop based on the market action at the time and their reasoning for being in a trade? Just curious.
Cheers,
PKFFW
AtlanaAnna
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Hello Newbie, I'm another newbie
I placed my first trade on June 23rd. I started with an account of $2500. The first week I lost $700 but I pulled myself together and returned to the game with a calm, can-do attitude. I entered the month of July trading with $1800. I finished the month of July with over $7000. So I made over $5000 in July. I think a lot of trading is about being intuitive and knowing when to hold 'em and when to fold 'em............ (not letting emotion make the decisions). I think trading requires the ability to think clearly in the presense of risk while having the steady hands of a surgeon. I think there can be a level of simplicity a newbie brings to this that can actually be very successful.
Sylvia
I placed my first trade on June 23rd. I started with an account of $2500. The first week I lost $700 but I pulled myself together and returned to the game with a calm, can-do attitude. I entered the month of July trading with $1800. I finished the month of July with over $7000. So I made over $5000 in July. I think a lot of trading is about being intuitive and knowing when to hold 'em and when to fold 'em............ (not letting emotion make the decisions). I think trading requires the ability to think clearly in the presense of risk while having the steady hands of a surgeon. I think there can be a level of simplicity a newbie brings to this that can actually be very successful.
Sylvia
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