It's even possible that a system has larger
losses than winners and still be profitable if the winrate is high.
Not exact matches
This plays a big role in investor behavior: Investors have a (bad) habit of selling
winners and not letting losers go because of
loss aversion rather
than for logical financial reasons.
Returns of individual stocks in the portfolio followed the typical pattern for successful quarters — more
winners than losers, and gains of greater magnitude
than losses.
The
winner can climb as high as 3rd with a Team Levine
Loss but will not finish any lower
than 4th.
There isn't much to savor from Team USA's 3 — 2 overtime
loss to Slovenia on the opening day of the Olympic men's hockey preliminary round in PyeongChang, in which the Americans spoiled a 2 — 0 lead with under 15 minutes to play and then yielded a tap - in
winner when all three defenders were caught puck - watching less
than a minute into overtime.
there is more
than 3 points at stake come Sunday, the
winner would have laid down the gauntlet for the chasing pack... Leicester can afford to lose and still get over the
loss because they are over achieving already, if we lose or draw that will be the death knell for our title ambitions
His shot rebounded to his captain, who fired home the
winner but as the replays rolled it was clear that the goal had actually relied upon Jordon Ibe's
loss of concentration at the set piece as much if not more
than anything a United player had done to create or score the chance.
While the boys» father Hollis (two - time Emmy Award -
winner Aaron Paul) loves his sons, he is still reeling from the
loss of their mother, spending more time drowning his sorrows at the local bar and working on his damaged beach house
than being an active parent.
More of the time we are focused in other details but the main the confluence is the key to get more
winner than lossers.
In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby instead of a small business • Lack of knowledge and experience • Trying to imitate others instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the positions and let the
winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of risk management rules on stop
losses, position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers instead of adding to
winners) • Putting your stock trading capital in 1 - 2 or more
than 6 - 7 stocks instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of short selling • Missing this market / industry / stock connection, the big picture, and only focusing on the specific stocks • Trying to predict the market / economy instead of just listening to it and going against the trend instead of following it
But since the average
winner is often 2 to 3 times bigger
than the average
loss, the end result is consistent trading profits.
But I would point out Jones semms much more of a Trader
than Investor, and advocates taking very quick
losses and letting
winners run.
The key isn't to try to make more
than 1:1 risk / reward so that your
winners cover your
losses (although that helps), but rather that you turn most of your failed trades into scratch / break even trades or very small
losses.
Over an entire investment career, the amount and size of investment
losses will most likely have more to do with returns
than the magnitude of
winners.
However, it is not uncommon for a professional trader to lose a higher percentage of trades
than he or she wins, but it does not matter because they keep their losers small and they are totally fine with swallowing
losses as they wait for a
winner to hit.
I have personally found that viewing my trades as a win or lose proposition and being totally OK with the
loss, is a better way to trade long term, because you will inevitably have some
winners that more
than make up for your losers, and you don't want to cut back on these
winners through breakeven trades.
Winning trades can range from 35 - 50 %, but that percentage reveals little information since we expect more
losses (of smaller value)
than winners (of much larger value).
When the RRR Realized is larger
than the initial RRR Planned it either means that the trader cut his
loss ahead of the initial stop
loss or that he let his
winner run beyond his initial target.
If the RRR Realized is smaller
than the initial RRR Planned it says that the trader let his
loss run beyond his initial stop or cut his
winner ahead of the target.
People who think they are
winners do not like becoming losers (even if they know they cheated and even if after their
loss they will still actually be living better lives
than most other people will ever be able to live).