Frequent small profits, rare large losses...

Discussion in 'Trading' started by nxt7, Dec 21, 2016.

  1. Data09

    Data09

    Hello. This topic touched me, because I was in the same dilemma.

    In the meanwhile in able to make profits consistently. Mostly I do scalp e-mini for 1-2 handles. My risk is never greater than 1/1.5. Win ratio is about 85-90%. I only master very few setups. I learned to be patient till these setups appears.

    Here my biggest mistakes did in the past which killed my account almost several times : had to wide stops. Wide stops are ok for low probability trades. But then, go for at least a profit which is twice your initial risk trail your stops to swing lows/highs. This kind of trades are mostly swing trades and have 40-60win ratio.

    Always set physical stops below/above your signal/trade bar.

    I did add contracts to average up/down. Don't do it as long your not confident with the trade you entered.

    I got influenced from very decent traders. Even they are way better traders than me, we have different targets, risk tolerance and so on. So, stick to your own rules and better avoid trading rooms / forums.

    My target was, make everyday at least 2 points. That's enough for a living. I reached that and even more.

    There are some days, I don't see decent setups. No problems. Don't trade . Other days offer plenty of setups.

    I prefer to trade trading ranges and reversals.

    Every time I loose more than I should, I didn't follow my rules. Take care and merry Christmas.
     
    #41     Dec 24, 2016
    algofy likes this.
  2. java

    java

    bracket trading is futile
     
    #42     Dec 24, 2016
  3. algofy

    algofy

    What is bracket trading?
     
    #43     Dec 24, 2016
  4. java

    java

    I'm a little teapot short and stout
    Here is my stop and here's where I'm out
     
    #44     Dec 24, 2016
    SMA, CyJackX and algofy like this.
  5. Data09

    Data09

    Nothing wrong with bracket orders as long you know how it works and how to implement into your personally trading style. I do that a lot, before I go to sleep. Scalping while I sleep. Love it.
     
    #45     Dec 24, 2016
  6. Agree, this is no different as you go to casino, looking at the roulette table, with some BS rule that if i see x times of Red in row, and the lady sitting across me is wearing red shirt, so I have to bet on Red.

    The real profitable trading /investment world is much more complicated, it definitely won't work in the way that if i see head and shoulders in my Chart, or some BS support/resistance or (self imaginary) price action, then i will long or short with SL above/beyong the S/R or target here or there. No one in wall street ever make money in this way. This is just marketing ploy from "paid" professional posters, brokers, bucket shops owner, educator sellers, vendor or fail day trader with delusion.
     
    #46     Dec 24, 2016
  7. algofy

    algofy

    Hey galvin....why don't you respond to my post last week when you said my math was so inferior to yours
     
    #47     Dec 24, 2016
  8. algofy

    algofy

    Wow do amateurs loooove talking about "bucket shops" these simply don't exist, at least in developed countries. These people read an old book on trading and consistently use these terms that aren't even real anymore pfft.
     
    #48     Dec 24, 2016
  9. O(1)

    O(1)

    huh?
     
    #49     Dec 24, 2016
  10. algofy

    algofy

    this is the response I'm waiting for. Why does 10% win rate and 20X wins vs losses not work out assuming reasonable commission and limited slippage.
     
    #50     Dec 24, 2016