Not exact matches
But, it's more difficult to control our own actions and thoughts
than it is to over-
trade or risk too much on a
trade because you've convinced yourself that that «this»
trade will be a
winner.
Four of the six
trades were
winners, equating to a net gain in our $ 50,000 model ETF
trading portfolio of more
than 2 % (approx.
Subscribers have suggested an alternative approach for the «Simple Asset Class ETF Momentum Strategy» (SACEMS) designed to suppress
trading by holding past
winners until they fall further in the rankings
than in the baseline specification.
In particular, more
than half of those surveyed knew who ran the oil well that exploded in the Gulf, that the budget deficit is larger now
than in the 1990s, that Republicans were the big
winners on November 2nd (though fewer
than half know that they'll only control the House and fewer still can identify John Boehner as Speaker), that the U.S. has an international
trade deficit, and that unemployment is pretty close to 10 percent.
No fewer
than 134 of the 552 players at the continent's showpiece international tournament ply their
trade in England, ranging from Premier League
winners Leicester City all the way down to Notts County in League Two.
But, one need look no further
than the current debate in the UK over the EU referendum to find other parallels with Repeal — e.g., an internal split in the Conservative party over British identity (particularly in a world with increasing
trade linkages); the difficulty in ascertaining the
winners and losers from a fundamental reorientation of
trade policy, amidst inherent uncertainty; the existence of tensions between different sectors and regions, stemming from
trade exposure; and so on.
I am a book editor myself, I've worked in the
trade now for more
than twenty years, and with every kind of book and author, from mass - market potboilers to Miles Franklin
winners and everything in between.
While the base
trading fee is a dollar higher
than our 3rd place
winner, Merrill Edge, we've bumped Fidelity up based on our hypothetical trader, who's interested in 10 options contracts (since on a per contract basis, they're much more cost - efficient).
Thus, it would make far more sense to «hope» for a profitable
trading year IF you follow your strategy and implement consistent discipline in your money management, rather
than «hoping» that every
trade is a
winner, because then you are hoping for something that is not realistic.
A trader may become afraid to take the next
trade and «hide» for a while, or they may
trade too small on the next
trade, only to see it win (but a much smaller
winner than otherwise possible).
My suggestion is that you think more about the fact that it's very easy to lose money
trading, rather
than the fact that you MIGHT hit a big
winner on any given
trade.
I defined big
winners as a
trade that made more
than 10 %.
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.
There will be times that you will have more losers
than winners,
trades go quickly against you, or you'll have to let go of some of your unrealized profits.
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.
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.
It really is hard to believe that
trading can be that straightforward, if we stop «expecting» to be right all the time and just
trade our edges, understanding that there is a higher probability that are
trade will be a
winner rather
than a loser when we only
trade our edges.
In other words, your
trading edge is randomly distributed across a series of
trades, so don't ever assume any one
trade will be a
winner and risk more
than you are comfortable with.
Yet over a series of
trades on that same pair / commodity, there were sufficient
winners to more
than cover the losers and thus return a profit over all
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).
Therefore, when you cut a potential winning
trade out of fear, let's say that
trade would have been a 3R
winner, you are voluntarily giving up more
than 3R in profit!
Traders should be far more focused on quality of
trades rather
than quantity of
trades, as you can make a good return each month with only 1 or 2 big
winners.
No, one of the ostensible virtues of a carbon tax or a cap - and -
trade system is that they are «market - based» solutions, which allow governments to address climate change in a flexible way, rather
than imposing a top - down solution of picking
winners and losers.