Article Three Trading Principles To Aid In Your Success As A Trader

T2W Bot

Staff member
1,467 68
A brief look at three important principles that no trader should overlook, if they intend to be successful.
It is a given that traders cannot win 100 percent of the time, because with reward comes risk, and losses are as much a fact of life as taxes and death. But there are highly valuable lessons to be learned about the trading process that go far beyond the dollar signs. How traders put reliable steps in place to ensure that their performance may be enhanced on the road to success is critical. For most success is dependent not only on what is done correctly but also on what potentially havoc-wreaking mistakes can be avoided and/or corrected.
There are three principles that can aid in anticipating and possibly avoiding mistakes, they are;

 1. Probability 2. Self Discipline  3. Responsibility

 These are simple enough to write about, but harder to carry out.
Probability; Trading is all about probabilities and while every trader encounters a losing streak or draw down...
Continue reading...
 
Last edited by a moderator:

neil

Legendary member
5,167 747
Simple but sound advice easily forgotten by many in the heat of trading
 

TheBramble

Legendary member
8,395 1,170
Larry Pesavento and Leslie Jouflas said:
Most losing streaks are the result of probability distribution. As an example, in 100 trades a system should encounter a losing streak of up to eight trades in a row.
I appreciate a basic article such as this can't go into deep probability, but I feel it should have been made clear this statistic is only meaningful from a probabilistic viewpoint with a system trading a Pw of about 0.44. Not a brilliant system, but perhaps the authors know a thing or two about the Pw of most new traders!

Of course, a system with a Pw of 0.99 can in reality hit a losing streak of infinite length. Unlikely, but possible. Knowing your Pw and the length of your probabilistic consecutive losing trades should be known ahead off the event itself if you are to have any chance of maintaining emotional equilibrium.
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock