MOST TRADERS FAIL
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We’ve all been there ‘” we start trading a so called edge/system/indicator that we are told will be profitable for us, but that is all we are told. We don’t know it’s key historical performance data/stats and known probabilities, so we don’t know how to manage our risk trading it, let alone how we will react / feel if we suffer losses trading it and at what level of losses. Then a few losing trades later we have lost confidence in the so called ‘edge’ probably not helped because we have over-leveraged / used risk that in the end we were not comfortable with. Fearful of further losses we abandon it. We are then low in confidence ourselves, fearful of more ‘mistakes.’ It seems like a vicious circle and we don’t know how to break it. Sounds familiar ?
This is the most honest website about trading that you may ever visit and could well turn out to be the most important. No silly false gimmicks, Ie: No ‘only 89 copies left,’ No free bonuses supposedly worth $1000, No annoying pop ups with discounted special offer for today only, No photo shopped statements, No retrospective ‘” ‘look at all these winning trades’ etc etc (They must think we are stupid !) … Just Common Sense and intelligent No-Nonsense information.
1. You need an Edge. 2. You need to know certain data/stats about the edge to trade it profitably. 3. You need a Plan Think you already have these ?….95 out of 100 don’t (even if they think they have)which is why they will fail! Ie: Most traders fail because they never get a true trading edge or compile the data/stats about it that they need to trade it profitably, let alone make a realistic trading plan. All 3 of these things are necessary for long term reliably profitable trading/spread betting. Without them I can guarantee that you will fail !
* Trading isn’t about getting involved in the market as many time as possible ‘” but about disregarding as many risks as possible to leave only the highest probability trading opportunities. * Most all of the other trading sites you will come across trying to sell their latest systems or indicators will talk about how much you can make…this is the wrong way round…what you should first consider is how much you can and almost certainty will lose, because you lack at least 2, but more probably all of the 3 essential tools for trading.
Whether you have a true Trading Edge or not, without knowing how to do this ‘” optimised to the edge you are trading ‘” you will almost 100% certainly not be profitable. This is part of the 2nd Essential Trading Tool listed above. * No one can absolutely guarantee your success. If they tell you that they can ‘” they are lying to you. The ‘4th essential tool’ of trading that no one can provide you with ‘” is your own action. By having the other 3 Essential Trading Tools, (The Trading Edge, The Data/Stats about the Edge, and the Trading Plan) you give yourself the best chance of taking action in a structured and disciplined way toward a pre-defined trading goal. (ie The Trading Plan.) As a result you will do so with more confidence in your ability to make a reliable and consistent income from trading than you have ever had. * So, you need a Trading Edge, and to know how to compile and calculate certain key Data/Stats about the edge as you trade it in order to professionally manage your risk, and assess other key performance areas. Then you need a Trading Plan.
First of all, a Trading Edge; Let me deal first with what a Trading Edge is, and is not, just so we get it out the way…you can either accept this as a self evident truth or not…but if you do not then please feel free to share your crystal ball / prediction powers with the rest of us ! A Trading Edge is simply a repeating circumstance or set of circumstances (ie a set-up or combination of set-ups, howsoever derived) that suggests a greater probability of price moving one way over another ‘” based on the historical performance of the edge to that point in time. Additionally and/or alternatively; if the edge does not suggest a greater probability of price moving one way over another, then based on it’s historical performance to date, it suggests that more gain is available when a successful outcome is achieved than when it isn’t, sufficient to realise a net gain over any pre-determined number of times that it develops (a sample.) Ie, Like everyone else I have absolutely no powers of prediction, so when I enter a trade I do not know what is going to happen. All I know is that over x number of trades (ie the ‘sample size’ over which the edge is profitable) I should, if I do everything correctly, come out with a profit overall. I developed a high probability (of a successful outcome) Trading Edge. It is therefore low in risk overall. This is because my maximum tolerance for risk was low and I could not handle long losing runs, ‘” they destabilised me psychologically and caused me to lose confidence in an edge, and in myself as a trader. How many of you haven’t been in that position I wonder ? My edge is comprised of 9 simple easily recognisable chart set-ups. They develop on every time frame of any trading instrument chart (forex, equities, commodities, fixed income etc…) from the1 minute chart… Read more…
