4 ways your trades should end
- Thread starter Zestilio
- Start date
Opinions? Lost tons of money when didn't followed this rule
The only outcome you can control is "avoiding big loss". And of course, you will many times turn a potentially large gain into a small one.... but that's a different issue.
i like this quote thank
Opinions? Lost tons of money when didn't followed this rule
all your trades should end in one way - by your method.
small win, medium win , big loss etc. etc - irrelevant if your method works
if it does not - no rule, including this one, will help
Opinions? Lost tons of money when didn't followed this rule
Small wins, big losses, that pretty well sums up the past 8 months for me. Need some tighter b/a spreads, maybe then could start enjoying bigger wins and smaller losses.
cheers!
Your post reminds of the truism: "Better to be rich, healthy and happy than to be poor, sick and miserable" ...
Opinions? Lost tons of money when didn't followed this rule
Wrong.
I have no problem if my losing trade is much larger than my winning trade (big loss with small win), this all come down to the risk/reward vs win/loss ratio.
I am completely OK if a system allow me to make $1 or loss $6 in each trade, IF my winning ratio = 95%
How well does your method "work" if it enables big losses? Aside from the rare black swan, I mean.
A working method by definition cuts losses short. If not, it fails.
Agree.
A big loss system doesn't means it is a loser system, this all come back to the expectancy (aka "edge").
If you have positive expectancy in your system (after commission and slippage) and good money management, who care if you can only make a small win with potential big loss in each trade ?