You are totally missing the point. I am talking about THE LEAST AMOUNT OF RISK while allowing for the MOST PROFIT POTENTIAL- that is chart based with a proper setup. Your stats are good but not optimal bottom line. Take a look at AAPL on the 5min chart right now.... low of day is 568.81.... a reversion to the mean strategy with an ultra conservative target of the 8 EMA has returned $ .75 when price revisted the zone down to $ 569... $ .19 WITHIN THE LOW OF DAY BUT REVERSED BEFORE GETTING THERE! $ .19!! Why didnt the MMs sweep all the "amateurs" with their stops just below??? The bid/ask in AAPL is often easily double or more that differential! Then what happens is AAPL AGAIN retests $ 569 but stops dead in its tracks... this time returning $ 1.16! AGAIN-- only $ .20 tick and look at all the amateurs that could be flushed out. The next candle revists $ 569.38... higher highs... hmmm... aapl showing strength (incidentally the market was hitting new lows when aapl went to $ 569... relative strength clue)... this time AAPL returns $ 1.41 and makes it to the 21 EMA... Had you positioned sized for some significant stop loss below the low of the day YOU ARE FORCED TO REDUCE CONTRACT/SHARE SIZE WHICH AS A RESULT REDUCES PROFIT.... IN LIEU OF INCREASING CONTRACT SIZE W/O INCREASING RISK! You are dead wrong my friend... You CANNOT have it both ways....it's mathematically IMPOSSIBLE...
Now on the flip side-- tight intraday peaks and valleys can also utlize tight stops---AAPL first strong resistance on the way back up was $ 571.50 on the 7:50 5 min candle... on the 8:05 candle price revisted the area back to 571.44 and then the next candle 571.40... $ .06-10 before reversing for a $ 2.44 move!!! LOL-- then at 8:55 back to 571.46 again before reversing for a $ 2.03 move!!! Surely market makers woudve brought the price up a little further to sweep intraday resistance players at key pivot points??? Multiple times both on long and short side. Case closed.
Actually not quite closed yet-- I also want to point out a condition where if AAPL revisits the low of the day shortly from the time of this posting it would NOT BE ADVISED TO ENTER WITH A STOP AT THE LOW! The market the last half hour has been trending up-- aapl however is now showing relative weakness with lower highs.... AAPL IS MORE LIKELY TO BREACH ITS LOW NOW. In addition- symmetrical triangle forming on 15min/5min charts with the prior trend pointing down... market continuing to make new highs. This has a very high likelihood of tanking if market turns on its resistance. New lows are a high prob... It will have NOTHING TO DO WITH MARKET MAKERS SWEEPING STOPS HOWEVER!
Oh, dang, I realize as I am posting I miss read the title of the thread. I thoought it said" 90% urinate". I was going to say we all urinate, but then realized the title. Then I realized most of us traders actually deficate, out of our mouths, about how well we do. Then it made sense. You meant to say 90% of traders are full of shit about how well they do, including you.
As predicted with high probability-- AAPL broke low and big time-- 567.62-- $ 1.19 breach. For those with a wide stop -- a huge loss was incurred vs the novice trader that disregarded the current setup and chose to go long with a tight stop below the then current low... It's the setup that makes using pivot highs/lows effective or not.
And now... since aapl is showing considerable relative weakness-- the low was breached AGAIN! 567.41.... not just a quick sweep but $ over $ .20... why? Cuz MMs said that's where the amateurs stops are! Yep uh huh!!! No-- weak stock in a strong market.... plain and simple.
6/14 aapl pivot low $ 567.26... price reverses strong with 3 large extended range candles on a 5 min chart for a $ 5 move. Where did price stop today for AAPL? $ 567.33... WITHIN $ .07!!! LOL--$ .07!!! Where did price go from there today? $ 572!! Maximum profit... LEAST AMOUNT OF RISK.