Monday 18 April 2011

For Existing Traders - Are You Facing A Sickening Trade?

Here's The Answer

If you're afraid to trade right now (because you're afraid of losing money), then this is for you.

Listen. You don't want to lose money; neither do I. But it's a fact of trading that you will sometimes lose. The trick is to win more than you lose. You must give yourself enough trades to make this a reality.

If you only make four trades, and you see that you've lost more than you've made, you're not giving yourself a fair chance. You will need more than four trades for gains and losses to average themselves out.

Of course, you will also need a proven method of trading. Not every trade or sequence of trades is a winner, but we win more trades than we lose and our wins are usually bigger than our losses.

To be a winning trader you first need a method that works consistently.
You also need to give yourself room to win. I suggest a bare minimum of 10 trades. Twenty would be even better.
Out of 10 trades, you will begin to see a pattern. You may win 6 and lose 4. If you win a decent profit on those 6 winning trades -- and lose only a little on your 4 losing trades -- your trading account will most definitely be up.

Over the course of 20 trades, you may find you win 13 and lose 7. Naturally, the more trades you make, the more predictable your win/lose percentage will become. This is a big key to long-term trading success. And don't quit. With both time and a winning method on your side, you literally can't fail.

Here is some advice you can take to the bank: "The key to trading is not to look for the big move but to stay on the right side of the market so, when the big move comes, you are there. That way catching big moves is not luck, it is inevitable."

 

No comments:

Post a Comment