Winning percentage

Discussion in 'Trading' started by Sucker, Nov 23, 2002.

  1. Sucker


    "The only predictable thing about the markets is that they are unpredictable." George Kleinman
  2. Sucker


    "The fact of the matter is that markets actually move in three directions - up, down, and sideways. It is important to be aware of this distinction because for at least a third of the time, by a conservative estimate, prices move in a flat, horizontal pattern that is referred to as a 'trading range'."

    John Murphy
  3. Sucker


    "The best traders make money on only about (*) of their trades. That's right. Most trades wind up being losers. How then do traders make money if they're wrong most of the time?."

    John J. Murphy

    * The percentage will be posted after we have the average poll results.
  4. To get meaning out of this survey, I suggest it should be redesigned to ask for winning % within various strategies... an 80% winning strategy for scalping is about what you need to be making a reasonable profit... but 80% with a trend trading strategy is totally amazing.... 40%-50% for a trend trading strategy is about right, but 40%-50% for a scalping strategy will lead to rapid failure... winning percentages mean nothing unless put into the context of the general trading strategies...
  5. Most of mine turn out to be winning trades, but often before or after the point at which I end up selling them
  6. To further Candlestick's reply, IMHO the percentage of winning trades as a stand alone statistic is meaningless. What matters to the individual trader is whether or not their personal winning percentage is aligned with their personality and the trading approach (s)he uses. Personally I am more comfortable with winning a high percentage of the time at the cost of very rarely "hitting a homerun". I know others who are comfortable with a winning percentage closer to .33, but they have the personality to withstand frequent and successive losses. Additionally, their losses are small and their winners are large.
  7. I should have referenced Candletader in my previous post, not Candlestick. Sorry. :(
  8. Net P&L is the only worthwhile statistic. You can be only 20% correct in your trades and still be profitable. Conversely, you can be 80% correct and be in the red.
  9. You have 60 minutes to edit your post. Click Edit on the post where you made a typo

    Thanks for the info.
  10. I agree, yet another poll that makes no sense whatsoever...
    #10     Nov 23, 2002