Always remember this
- No matter how great your strategy is.
- No matter how great your analysis is.
- No matter how perfect your execution is.
YOU WILL LOSE TRADES.
Here is a secret about what trading really is.
Trading is all about being a profitable loser.
Nobody has a 100% win rate.
But how can you lose and still be profitable?
- Risk management is the key.
- Making sure you cut your losers and let your winners run.
- Controlling your emotions.
To put it in perspective, if you have a RR of 1:1, you need to win 51% of your trades to be profitable.
If you have a strategy with an edge, you should be able to have a higher win rate, if you know what you are doing. If your RR is higher than 1R, let’s say 3R, then having a 50% win rate will result in quite healthy profits.
Bottom line : Accept that you will lose no matter what and stay consistent. That’s the real secret of being a great trader.
0 Comments