A goal without a plan is just a dream
On this blog I have documented 10 Steps that summarize my plan.
Each page contributes to my understanding of what is important to be successful
Keeping records and statistics is a CRITICAL aspect of trading...
Not only to be aware of what you have accomplished but to help you to grow
and adapt to changes into the future.
Keeping records and statistics is also the most tedious part of trading
Ignoring your statistics will lead you to ruin
Ignoring your statistics will lead you to ruin
IMO, trading is all about understanding the numbers. Over the long term, your win-loss ratio will probably approach 50-50 which is no better than tossing darts, letting a monkey pick your trades or flipping a coin. BUT even if you consistently win only 2 of 4 trades you can still be very profitable.
Understanding your statistical results will help you enhance your odds for success.
Even incremental improvement to things like Win/loss ratios or $ Won-vs-$ lost per trade
make huge differences. That's where keeping true records comes into play. Learn to know how they can help, for example -- understand why you can win only 1 trade out of 3, yet still not lose your shirt...
Example #1
Example #2
Example #3
Trade management, Money management and Statistics management ALL come into play in this business.
There are a multitude of ways that each can be useful for enhancing your trading bottom line.
Understanding your statistical results will help you enhance your odds for success.
Even incremental improvement to things like Win/loss ratios or $ Won-vs-$ lost per trade
make huge differences. That's where keeping true records comes into play. Learn to know how they can help, for example -- understand why you can win only 1 trade out of 3, yet still not lose your shirt...
Example #1
You will never "know" which trades will work.
For most of us who don't work off inside info, trading is a simple numbers game...
Feel will improve your winning/losing odds to well above 50% over time.
Managing your stops and targets is critical...Doing so will allow for a positive bottom line.
Attempt to take out 2.5 to 3 times more on the winning trades than what your stops give back.
For example:
Even with a only a 50% win/loss ratio, on every 100 trades taken:
Winning $60 on 50% of them grosses +$3000
Managing your stops and targets is critical...Doing so will allow for a positive bottom line.
Attempt to take out 2.5 to 3 times more on the winning trades than what your stops give back.
For example:
Even with a only a 50% win/loss ratio, on every 100 trades taken:
Winning $60 on 50% of them grosses +$3000
....Losing $20 on 50% of them grosses -$1000
............................. Nets you a positive +$2000
(less after including commissions of course)
............................. Nets you a positive +$2000
(less after including commissions of course)
Trade management, Money management and Statistics management ALL come into play in this business.
There are a multitude of ways that each can be useful for enhancing your trading bottom line.
It's ALL up to you
