Can this be considering a 'winning day'

Discussion in 'Psychology' started by chewbacca, Nov 21, 2005.

  1. I made 12.99 today after a max drawdown of -800. I think this has to be considered a huge down day cause risk -800 for +12.99 and see where that gets you after 1000 trails.
    A win isn't always a win and a loss isn't always a loss.
  2. What blathering stupidity!
  3. you broke-even after being down -- so what's the big deal?

    the question you should ask yourself is whether you would "always" get out when a trade shows $12.99 in profit and let it slide $800 against you and do nothing... hope the answer is "no".
  4. A winning or losing day is defined by whether or not you followed your rules. The P/L numbers are just data points on your equity curve. The goal is to trade well, money follows as a result of that.

    This of course assumes you have some kind of edge. Only you can decide if your risk:reward is appropriate.
  5. Lescor,

    Completely agree.

    Unfortunately too many traders will not understand that.

    For example...someone makes $2,700 in a trading day while not being in the red at all that particular trading day...

    While breaking all the rules in their trading plan...

    Then considers it a good trading day...

    Is more likely than not going to enforce bad trading habits that will ultimately come back to take a big bite out of their trading account.

    Just the same...if someone has a profitable day of $12.99 while following their trading plan...

    Will in the long term be in better shape than the trader that makes a habit of not following the trading plan.

    Numbers (+/-) are pointless unless they had some definition (trading instrument, number of trades, when the trades occurred, method used et cetera.

    (a.k.a. NihabaAshi) Japanese Candlestick term