I have the following question to experienced traders please.
We all know, that enormous amount of newbie traders do loose their money (often numbered as 95%). But it tells me one thing. They know how to move their portfolio amount in minus direction. And what can happen if you completely reverse the strategy of any newbie? Will you make the money in reverse? I suppose that if I would do completely the contradict buy and sell orders then my portfolio would be in a plus amount.
What does it tell me again? That even if the novice trader was entering his trades logically, at the places considered by many systems as high probability trades like breakouts, trendline bounces, candle patterns etc. he still loose his money. But if I would do the reverse orders in the same places, I would win.
Is my logic totaly wrong now, when I say, that it's completely not about the importance of entry place but about when we exit? Because I will hold the winning trades for a long long time (as reverse of loosing trader holding his loosing positions).
Well, then what about the random entry strategies, that would pick random entry and apply the "reverse-newbie strategy" to it: cut your losses quickly (as the newbie does with gains) and let your profits run really long (uncontroled as the newbie does to his losses again), preferably with adding more into the winning position (as the newbie trader would do with averaging his losses).
I really wonder, if these random entries work and if such a simple system could be long term profitable?
Do we really need any chart at all? Isn't it all about money management and psychology (to stay with our system whatever happens)?
If 95% newbies do loose, doesn't it gives us a 95% stable strategy/system how to make money if we reverse their newbie mistakes? And what's common with all the newbies, the reason why they loose their money: is it that they let their losses grow?
We all know, that enormous amount of newbie traders do loose their money (often numbered as 95%). But it tells me one thing. They know how to move their portfolio amount in minus direction. And what can happen if you completely reverse the strategy of any newbie? Will you make the money in reverse? I suppose that if I would do completely the contradict buy and sell orders then my portfolio would be in a plus amount.
What does it tell me again? That even if the novice trader was entering his trades logically, at the places considered by many systems as high probability trades like breakouts, trendline bounces, candle patterns etc. he still loose his money. But if I would do the reverse orders in the same places, I would win.
Is my logic totaly wrong now, when I say, that it's completely not about the importance of entry place but about when we exit? Because I will hold the winning trades for a long long time (as reverse of loosing trader holding his loosing positions).
Well, then what about the random entry strategies, that would pick random entry and apply the "reverse-newbie strategy" to it: cut your losses quickly (as the newbie does with gains) and let your profits run really long (uncontroled as the newbie does to his losses again), preferably with adding more into the winning position (as the newbie trader would do with averaging his losses).
I really wonder, if these random entries work and if such a simple system could be long term profitable?
Do we really need any chart at all? Isn't it all about money management and psychology (to stay with our system whatever happens)?
If 95% newbies do loose, doesn't it gives us a 95% stable strategy/system how to make money if we reverse their newbie mistakes? And what's common with all the newbies, the reason why they loose their money: is it that they let their losses grow?
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