How To Never Lose Money On A Trade

lawrence-lugar · Jul 27, 2016

bh_prop said:
perhaps a less ridiculous choice of title wording would have been appropriate . . .

I agree,
I just read this post and title -- and i'm kind of scratching my head, thinking...wtf is he babbling about

(i hate reading alot -- get to the dog damm point)

MarketAddict · Jul 27, 2016

Clarence416 said:
Perhaps, but not nearly as enticing. The more absurd, the more readers, and the more people get that very valuable nugget that took me from busting me from a losing trader to a winning trader 6 years running, to being up 264% this year.

It's an nugget, but nothing that will get anyone from non profitable to profitable... But I cant hate, keep throwing out nuggets.. I just know from experience that it takes more than cutting your loses short to be profitable..

TradeCat · Jul 27, 2016

The way to not lose money is to not treat the financial markets like a casino.

All the rookie "traders" posting on this forum are trying to learn the quickest way to get to riches. They're not here to learn. They're here to get an edge on their gambling addiction.

Cut your losses early = Lose a tiny bit every day until you lose it all.

dealmaker · Jul 28, 2016

http://www.elitetrader.com/et/threads/how-does-this-hedge-fund-manager-make-so-much-money.301531/

panzerman · Jul 28, 2016

TradeCat said:
Cut your losses early = Lose a tiny bit every day until you lose it all.

Not unless your average gains exceed your average losses. It's called a positive expectancy system. Everyone has losses, but almost no one has a positive expectancy trading system. You can determine expectancy through rigorous backtesting or by empirical results (ie trail and error.) The later seems to be the most common way, which is why such systems are exceedingly rare.

K-Pia · Jul 28, 2016

The funny part is "Ought to lose".
When it's first a question of dynamics.
Then after come the setup linked constraints.
You can't Grind it. You must speculate, know the mechanics.
Then you either buy Overlays or sell Underlays.
Everything with Risk in mind first.
Size it well & stay cold.
Basta.

Racing is simple. Everything about the game is logical and common sense and elementary. All the figures and the mathematics and the mechanics of racing can be understood by a child in junior-high school. But the game is decked out in an endless number of minor contradictions and open switches and deadfall traps, in order to lure the average player into doing everything wrong.

Clarence416 · Jul 28, 2016

TradeCat said:
The way to not lose money is to not treat the financial markets like a casino.

All the rookie "traders" posting on this forum are trying to learn the quickest way to get to riches. They're not here to learn. They're here to get an edge on their gambling addiction.

Cut your losses early = Lose a tiny bit every day until you lose it all.

By and large, even a total rookie, taught to cut their losses early, can throw darts at the market, and by chance be right 30% of the time. It's been proven time and time again, most traders are winners, the problem is that there losses often exceed their wins. If they know when to cut their losses, their winners will take care of themselves for the most part.

MarketAddict · Jul 28, 2016

Clarence416 said:
By and large, even a total rookie, taught to cut their losses early, can throw darts at the market, and by chance be right 30% of the time. It's been proven time and time again, most traders are winners, the problem is that there losses often exceed their wins. If they know when to cut their losses, their winners will take care of themselves for the most part.

In a perfect world maybe that will work.. But seriously, the market isn't perfect... The market wasn't design so the average Joe can make money.. You will need more than cut your losses short and let your winners ride.. This market is too complex for that.. You will need a well planned strategy to make money every year... The problem with your theory is people that have no clue about the market will win big if they let their winners ride , but they will give all their profits back when the market consolidates.. Trust me, this market is well prepared for your theory.. The market will eat people alive if you don't understand what's really going on.

felixbocharov · Jul 28, 2016

How To Never Lose Money On A Trade

Never Trade.

TradeCat · Jul 28, 2016

Traders are not investors. Traders are gamblers who let their winners run and cut their losses early until they give all their money to the brokers and lucky traders.