Which trading strategy would you prefer?

It's more closer to 1:1.3 actually. It's about frequency, consistency and finding uncorrelated trades.

 

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That;
+ dividends + find a better system/discretion, Its like Dave Ramsey says; almost always there are more than 2 choices. Good Trading/investing is not a 50/50 coin flip/random; i did much much worse than random, 1st year of trading. LOL-LOL But better than average 1st year of investing..................................................................................Thanks

 

%% Depends on the market; a good trender like QQQ has had DD of 80% before. Easy for me to say, not long QQQ now.
Trash like TSLA, could draw down to zero/goose egg/ bankrupt LOL; never long TSLA..So that is how to avoid a TSLA long dd.....................................................

 

Is English your native language? Just curious...

 

Strat 1
1. If the choice is between a pleasant vs unpleasant trading experience, why not choose the pleasant. Life is too short to spend on feeling bad over your losses all the time. Then there is this thing called Law of Attraction...
2. It's a little risky to rely on that one big winning trade to save the day, what if you missed out on that crucial trade while on a toilet break? That one mistake could f*k up your results.
3. When relying so much on that rare winning trade, one is more likely to take profits early for fear of the trade turning around. Again, the psychology of it does matter.

 

that is the most logical answer, as i said if the OP is using an automated trading system then its all together a different story but for that also with the two scenarios you need a good bank roll, even if you take out the human emotions. If its manual then there is no way both strategies are viable for making meaningful profit. Only person benefiting is the broker.

 

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Yes+ mom was an English teacher/got great grades. Subject is understood; for example depends on market means= it depends on the market/+ almost always more than 2 choices , you can figure it out.................................................................Good question

 

i agree 100% with stanley.

 

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Exactly.And a low win rate could work well with big trends/ huge trends, but those may NOT happen much.

Of course if one has done real well/long time with a low win rate-that is much different .

 

You need to learn turtle speak. Mr. turtle often spoke in parables.