Sentences with phrase «average losing trade»

The bottom line is we must always maintain extreme discipline to adhere to stop prices when executing our trading system, or else the dollar amount of the average losing trades will be larger than the winning trades.

However, the reality is that a trader's long - term profitability depends largely on other factors, such as the dollar amount of the average winning trade compared to the dollar amount of the average losing trade.

Conversely, if a trader has a win rate of just 50 %, but allows the average winning trades to ride to being just double (200 %) the size of an average losing trade, the trader will become net profitable over the long - term.

What matters more in the long run is whether or not the dollar amount of your average winning trade is substantially greater than your average losing trade.

But the average losing trade was worth 83 pips while the average winner was only 48 pips.

I made an excellent living as a futures trader (before I took up forex trading) winning on average only 2 out of 5 trades — my average losing trade was only $ 300, whereas my average winning trade was over $ 1,000.

When we break down the expectancy, we also look at the size of the average winning and the average losing trade.