So does that mean if I do the exact opposite of what you stated, I will be on my way to riches? Can it be that easy? See, i guess what im trying to say is that any strategy than can be used to lose money as stated in the mentioned perimeters, could be also used to become very successful. Yet as we know.... its not an easy task to do.
Yeah.... its not really 98 to 2 more like a scale resembling a parabolic curve that averages out to 98/2
With the proper stop and trade management, and a few other simple rules, yes it is that easy and you will kill it. Problem is that 95% lack the confidence and discipline to stick to it and put it all together. It is far more easier to lose money using leverage than it is to make it as long as you take the discipline aspect out of it.
I beg to differ. You say "sure its that easy, IF one does x y z ... and have confidence and discipline"................................... Well that's the crutch of the problem isn't it? I mean Anybody can do anything until you throw in "if's" ....... am I wrong? Taking the discipline out of it as you say still will not prevent trades from going against you, which in this case would be making money.... triggering off stress, and emotion..... the same way as if a regular joe somewhere is in ES or YM with a several contracts, and the trade starts to go against him. Surely you must see what im trying to get at here.
wow i just realized how blind you people are. i post the correct answer on the first page and you guys completely ignore it for pages. lol elite trader what a great site.... wait!!!! i did see jorge saw it!! HOORAY! THERE IS HOPE!!
Under high stress the result is likely the opposite of what we wanted. Scared money has high level of stress. Death threatening has high level of stress. What's the difference between paper and real trading? => Stress.
That's illogical. The reason being, you could set yourself up a mirror account that is exactly opposite of what you set out above and it would have to increase by the amount decreased in the first account. If the sure thing is decreasing the first then the sure is increasing the second. You could paper trade the first and actually trade the second account.
The statistics say you are. TRADING itself is easy, lack of proper money management and discipline is what makes it hard. You can only do 2 things on any given trade, lose or make money. If someone has a 80% win rate, then why can't they reverse engineer the strategy and end up with a 80% loss rate. Run the 80% losing stratey in ES using 120 to 1 margin and cut the winners shorts and let the losers run. It can be done.
OK i follow what you are saying now. If someone knows what hes doing, then he could bring the account down. I agree. However thats why I said in the opening post that it was a "fairly new trader".