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Fair enough, but what would you say about those who pay your check? If they are in your situation, who pays them? If one repeats the chain of who pays who, and why they trade, would the answer remain the same?

You did not answer the question: why do people trade?

I believe you could derive other conclusions from this -- conclusions that might be to your benefit.

There are three ways one can measure wins and losses: in dollar terms, percent terms, and gain and loss factors. If X is the percent risk, and Y the percent gain, and assuming a loss then win sequence, to make a gain one needs this: Y-X> XY (and not zero to the right of the inequality as some...

This is an excellent post! Thanks for posting.

Thanks for being the first to post. I think it is natural when one starts, to first think in terms of winning percentage. The error could however be in thinking of % of winners in isolation, which I understand is your main point.

Do you mean the first or the second entrancement? If it is the first, doesn't that imply one does not have a new line yet?

I think you are a thinker trader198, but I have question: if people lose in trading it means they have tried, which means they did not have excuses for failure. Any thoughts on this?

I responded to your post, because I felt you are intelligent and you think. Why do you think it is possible to have capital and knowledge that work? I noticed that you wrote successful, but I wrote capital.

In trading physical things, two individuals trade two items for profits because when the items change hands, they can bring value to both individuals. Why do people trade in financial markets? If it is only to exchange risk and reward, from a rational point of view, what is risk to one side...

Any trader lacks one of two things or both: knowledge or capital.

I think both stockie and you are intelligent people. I think that what he wrote has deep meaning, and he seems to be thoughtful, I do not know him, but I noticed his questions and I like them. And he is polite.

Most journals post trades. I thought why not start a thread in which thoughts about risk and reward, and other aspects of trading can be written down. All thoughtful comments/posts are welcome. If it is a thought you read somewhere and want to share it, write it and include the source.

The fast run is probably due to the volume of the stops of the longs who bought within the range, and put stops below what they thought was support. Those who did not put a stop, would now be waiting to get out at a small loss if they can. But if everyone one took their loss, then price might...

The above seemed strange to you last week. Take down the numbers mentioned: 3400 and 3330. Now go check the chart of this past week: the top was 3400!:cool: Also notice the level 3330. Drawing lines without thinking is not something intelligent people should do.

Since you said it is wrong, that means it is right. PS: I know it should be right because maths do not lie.

Now that we have hindsight, let us review things so that the people who were a bit confused might see things a bit better. This thread started on October 21, 2013. Now take two charts: one of russell and one of the S&P. These questions may be in order: 1. How far was the top of the...

Thanks. I agree with you. How do you allocate funds to instruments? Do you know of sites that post uncorrelated instruments (and monitors correlations)?

I believe you did not understand what I wrote. Also, your post summarizes how some students may view their teacher thoughts when they are learning something they have not yet learned/mastered but think they do.

A one instrument-only trader would in principle end his day either with a win, or a loss. Assuming a positive edge, losses would wait for future wins to be cleared. This correlation between wins and losses across time should be inherent to the results of any one instrument-only trader. If there...