Here is a simplified version one of the market wizards has averaged 49% ROR over the last 4 decades swing trading futures, Forex, and stocks. He had only 1 year end in a draw down which was 8%. Many years of trading has led me to trade in a similar way with stellar results. This is a typical model how the best swing traders get it done.
1. Monitor >60 mkts
2. Enter 50 - 75 trading ideas/year
3. Only losses are day traded (exited on same day if they aren't acting right).
4. Risk on trades represent <1% to 3% change in underlying value of instrument
5. 8 to 10 trades = annual profit
1. Limit loss per trade to 1% of capital (2% max)
2. Learn that 80% of trades are throw-aways. Play for the 20%.
3. Don't worry about catching tops/bottoms. The money is made between the 30-yard lines
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