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

Discussion in 'Trading' started by Laissez Faire, Jan 9, 2025.

  1. VOLdemort

    VOLdemort

    Xela, stop. Same bot sht; different channel.
     
    #41     Jan 10, 2025
  2. My last big risk reward trade was 1:20....I would think most swing trades are at least :1:10... Why are you guys wasting your time with 1:1 or 1:2 LOL?
     
    #42     Jan 10, 2025
  3. They make it up in volume, duh.
     
    #43     Jan 10, 2025
  4. No they don't lol. Why not just do one swing trade instead of chasing your tails? The problem is you guys want to run before you can walk. You are competing with algorithms and HFT.
     
    #44     Jan 10, 2025
  5. Good Morning Laissez Faire,

    Good write up. Thank you
     
    #45     Jan 10, 2025
    Laissez Faire likes this.
  6. Yes. I don't want to preach in this thread, although it may seem obvious where my preferences lie.

    It's all about actually understanding what's required of you and your system to actually make a profit.

    You want to scalp with a 5 point stop and a 1 point profit target? How high does your win rate need to be? Can you actually achieve it? I best most just start 'trading' and hope it's gonna work out (it usually won't).

    You want to trade for larger swings? Well, make sure you actually run your trades to target at twice your stop minimum and never increase your stop.

    I just think if people were really honest with themselves and understood expectancy 100 % they could improve a lot (or realize they should give up as they're trying to achieve something futile).

    Those who talk about following a silly R/R formula doesn't get it. It's about understanding your trading style and what's required for you to win. Simple and basic, although I think it's something which escapes many.

    You'd be surprised how many miss that very basic fact. :)
     
    #46     Jan 10, 2025
    flash crash and rb7 like this.
  7. taowave

    taowave

    Sorry Chef, WXY agrees with you..You are in deep doo doo..

     
    #47     Jan 10, 2025
    ironchef likes this.
  8. taowave

    taowave

    Say Wut??



     
    #48     Jan 10, 2025
    rb7 likes this.
  9. schizo

    schizo

    His ignorance is second to none. He seriously needs to trademark the damn thing.
     
    #49     Jan 10, 2025
    taowave likes this.
  10. taowave

    taowave

    Are you talking SAVAA

    I thought you sold the puts at a buck and watched them go to 20??

    You bought them??



     
    Last edited: Jan 10, 2025
    #50     Jan 10, 2025
    TrailerParkTed likes this.