My trading has been ruled by the Pareto Principle. 85% of my career profits have come from 15% of trades. This means that 85% of my trades are throw aways. This means that my job is to allow the 15% become the 15% and apply aggressive trade mgmt to the 85%
When encountering a challenging trading period it is often best to slow down and become more deliberate rather than pressing the markets out of a desperation to regain lost territory.
Gotta love when people apply value investor aphorisms to crypto and get killed because of it.
Being “greedy when others are fearful” makes no sense as stand-alone advice. Would you run against a crowd fleeing a burning building so you can loot it?
I follow about 60 different futures markets, forex crosses and cryptos. I trade an average of 1.5 times per week -- that amount to an average of trading each market one to two times per year.
Ppl ask me the success rate of chart patterns. WRONG QUESTION!!! I ask myself the following: "What are likelihoods that
1. I can quickly move stops to break-even?
2. A target will be met with minimum interruption?
The success rate of a pattern is irrelevant.
Win rate is the most over-rated and over-exploited trading metric existing. The metrics that matter are:
1. Max % of total capital risked per trade
2. Ratio of avg. win size to avg. loss size
3. Gain-to-Pain ratio (cume ROR of all trades/cume ROR of losses)
When i was 23 years old and a young buck stock broker in late 90s... i recall one of the senior brokers at the firm had a sticky note on top of giant desktop computer that read: "You can always buy it back!"
Many traders obsess over being right and sounding smart. NOT ME. My obsession is to find entry points whereby I can move stops to at least break-even within a few days -- and let profitable trades take care of themselves.
5 Errors that Blow Up Accounts 👇
1. Revenge trading
2. Never using a Stop
3. Constantly averaging down losers
4. Not having a plan (Risk/Entry/Exit/Stop)
5. Greed — risking too much/not taking profit
Plug these equity drains & increase your odds of being profitable.
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Quit trying to trade every level on your chart.
Instead, pick a spot to trade where you'll earn big when right and lose small when wrong.
The result?
Less trading, less commissions, less mistakes, and a fatter bottom line.