Thank you for your posts on probability. It triggered me to look at probability function in daily stock movements more seriously. There is a mathematical relationship between win rate vs R:R, out of which, there is an optimum profit with an associated optimum R:R/win rate based on PA behavior. Of course it is all theoretical but it does support what you said.
i am a day trader and i think you are too. i am a scalper.so time is not a major factor/criterion in the trader's equation. but once you hold for days or weeks or years, then time plays a part, too. Trade management is math and the reason markets, follow math more than ever before, is that computers, which are forming a larger and larger part of the total volume of trading, are programmed by math. i am doing quite well since i started applying probability to my trading. i have also started trading bar by bar. and i now do not see more than 20 bars and, in a strong trend, i see not more than 7-10 bars. wt is bar by bar? Well, Brooks has explained it all and it took me 20 years of practice, to understand what he means. Not reading his books or seeing his videos. actually putting what he says into practice. scalping is the most difficult thing to do in trading. And i make 20 scalps in a 4-5 hours period. when markets are dull, i have also learnt to swing trade and hold till the swing shows signs of ending. so my trading is turning around as i expected it would, because of the time, effort and investment both, in financial and emotional terms. of course it is needless to say that just because you put time effort you will succeed. time and effort will get you knowledge and to get knowledge about trading one good resource is Brooks. but knowledge alone will not make money. you need understanding and to get understanding you need persistence. Brooks gives you knowledge technique but he cannot give you understanding
Actually I am a full time options trader, time frame is weeks. Day trading, scalping is new to me, this old dog is trying to learn a new trick. So far it is only sim and paper trades but I will go live soon.
some advice-dont. an elephant cant climb trees. do what you know best try it for fun.... miracles do happen but it takes a long time to evolve. For me it took 15-18 years
Appreciate the advice. It means a lot to me. If I go live again, it will be for a free Big Mac, here and there, like going to Vegas playing nickel slot machine.
Dumbo could even fly. And the elephant does not have to climb trees, it can knock it down and get what it wants.
use that imagination in reading charts and you will get there. that is what Brooks tries to teach and that is not very easy to do