Failure to understand risk/reward and why you're losing as a trader.

Maybe for you, chatGPT wasn't that helpful when I asked to help me get rich quick.

 

Yeah, me neither ...
I'll run an experiment though.



I asked them to give me 10 stocks with bullish, neutral or bearish outlook for next week.
I'll let you know EOW what the returns are I'll try it for a month and see.
Let's see if they really are intelligent or just a bunch of retards xD

 

Very clever. I like your creativity.

 

Nice .

You should start a journal doing this, I wonder what the performance would be in the long run.

 

On topic someone forwarded me this blog post which covers the same thing. It's pretty good:

Making It Impossible NOT To Be Consistently Profitable

Eureka. It's been said that trading is rigged against human nature. It's true.

I bet quite a few are pretty good at cutting losses, but still fail because they don't run their winners.

 

99.9% of us agree with you and the quote but only 1% could achieve it. Why?

In my case, 9 out of 10 times when I let profits ran, they ran into losses so I let them ran less and less..... and I became a scalper.

 

I think you talked about a guy from Market Wizard. The guy was mainly trading events.

Man … Ok … We’re wrong half the time (binary)
Everyone on top of Market knew today would be hot.

WTF didn’t I bought a 0DTE put on SPY ?!
I think if we wait for major catalyst,
No index day trading shit,

Then we can make 10 and lose 1 half the time.
The key is just patience and boldness.

People will think it’s a gamble.
Because they know better.

But dumb & convex beats smart & concave
LTCM were a bunch of very smart guys.
Even if they were not on ET.

 

Only if you are an options guy.

 

Its's pretty hard to get 3:1 reward:risk trade consistently everyday, The market it's just too efficient for that.

The old saying "cutting loser quick and letting winner run" it's so misleading. Nobody is that good getting 50% winrate with 3:1 on every every trade.

Positive expectancy it's what make you money, doesn't matter if you get 3:1 or 1:3

 

1. I didn't say it was easy, but I would argue it's easier.

I also said that swing trading by default is easier since you're trying to capture larger moves relative to your risk.

2. You don't have to trade every day. If you see the original videos I posted that guy said multiple times how most people overtrade their accounts and shouldn't even trade every single day.

That said, I'm not quite sure I agree that you can't get 3:1 trades on a daily basis - especially in current volatility. You don't even need 3:1. Go for 2:1, then.