I feel the only two paths to profitable trading is you either put on 1 trade a day or 100+.
1 If you put on 1 trade a day then you very carefully plan out the day and the trade with your stop and profit target and once you enter you let the trade go. Whatever happens reflects how well you planned your trade. However with this approach you have very large fluctuation assuming you are using large targets.
2 If you put on 100+ trades a day then you are basically scalping almost every move as soon as price breaks a certain level you either aggressively trade the break as a momentum trade or your fade it expecting a return to the break.
With this approach though you do need a low cost broker with the lowest commissions and even then you may need member rates.
I think nearly every pro trading firm trades strategy # as reflected buy the fact that many firms do 1-5% of market volume in many securities.
So in ES that is like 10000-50000 contracts a day for example.
It is an insane amount of trading.
But for the retail guy it seems strategy #2 is out of reach without large capital, tech, risk management, algos, traders, and exchange member rates.
Strategy #1 is doable but it's an all or nothing mentality that you need to develop. It is the total opposite of #2.
The problem with the 1-100 trades "middle ground" is that basically it eventually all devolves into overtrading, trading too large, too impulsive, too emotional, or eventually you end up giving back all your gains on 10 trades in 1 trades if all in/out or all your profits trading 1 lot on a 10 lot if scale in/out.
1 If you put on 1 trade a day then you very carefully plan out the day and the trade with your stop and profit target and once you enter you let the trade go. Whatever happens reflects how well you planned your trade. However with this approach you have very large fluctuation assuming you are using large targets.
2 If you put on 100+ trades a day then you are basically scalping almost every move as soon as price breaks a certain level you either aggressively trade the break as a momentum trade or your fade it expecting a return to the break.
With this approach though you do need a low cost broker with the lowest commissions and even then you may need member rates.
I think nearly every pro trading firm trades strategy # as reflected buy the fact that many firms do 1-5% of market volume in many securities.
So in ES that is like 10000-50000 contracts a day for example.
It is an insane amount of trading.
But for the retail guy it seems strategy #2 is out of reach without large capital, tech, risk management, algos, traders, and exchange member rates.
Strategy #1 is doable but it's an all or nothing mentality that you need to develop. It is the total opposite of #2.
The problem with the 1-100 trades "middle ground" is that basically it eventually all devolves into overtrading, trading too large, too impulsive, too emotional, or eventually you end up giving back all your gains on 10 trades in 1 trades if all in/out or all your profits trading 1 lot on a 10 lot if scale in/out.
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