Dennis Gartman... GREAT Lesson In Trading

AAAintheBeltway said:
For discretionary traders, the most important stat to know after drawdown is max adverse excursion. That is the amount of red ink a trade can absorb before the probabilities shift against you. It's probably the single most valuable thing you can discover via backtesting.

Daytraders can achieve very high win rates, but the achilles heel will always be the big loser. If you avoid the big losers, you can make good money as a trader. The first step to avoiding them is to know when a trade has gone sour. It sounds easy but when your money is on the line, it's one of the hardest things in life to do.
More...
I agree, however, I still strive for a high win rate. It helps to advert risk of ruin and can increase profits dramatically in an efficient strategy of trading.
 
this website and the critical banter back in forth is really becoming unnecessary. Try and listen to what's being said instead of concentrating on every detail and how it's being said.
Try to achieve a trading system that gives you an edge, one that does well over the course of time.
Someone may have success trading a system with a high winning percentage and someone else maybe equally successful using a low winning percentage system. It would entirely depend on Risk to Reward. In the example above the one with the high percentage would have more wins on a higher percentage of trades and the other trader would lose a little , lose a little, lose a little more, and then make up for the previous losses and gain that plus more when the trades worked out.
So again it depends on the design of the system and for us members to make blanket statements thinking that if your not in agreement with what I think and or are what I'm saying than your against me or you're an idiot or F.U. etc... etc...

Keeping it Professional - 322170
 
You must log in or register to reply here.
Back
Top