How many stores did you do last month? 4? 40? 400? The answer will tell me a lot about you and how you approach the market. There is a very high correlation between the trading frequency or the number of transactions per month and the curve of a person’s trading capital.
Show me a growing equity curve and it is almost certainly a low-trading trading approach behind it. Show me a constantly declining value curve harmonic scanner and it will probably hold a much higher trading frequency beyond that.
Best trad time
Today’s lesson is based on very, very real hypothetical examples in their theory and the notions they have learned. I’m going to show you my trading style and perform a three-month trading routine simulation that sees my personal trading routine very similar, with a month-to-month bias. I will show you how I market it, I think how many times I sell, the schedule and risk / return more. So, let’s start this holiday …
All my business philosophy, and the philosophy of my life is that every time is less, the simple is better, I consider myself a minimalist, especially when it comes to negotiations. There are some very good reasons why I am doing this. I have discovered over time and a lot of experience, that the more you press and try to make money on the market, the less you will do. What this means is that I prefer to apply a low frequency trading approach, because the reality is that it works. Traders who do a lot of trading or day-trading, tend to rack up the costs of spreads / commissions and lose business. Not to mention, there are very real mental costs associated with a lot of commerce, it is incredibly stressful and exhausting, it has physical costs for you and the costs of the relationship for your friends and family.
Top trading zone
Once you understand the two previous points, you will begin to change your mind about trading. Remember that you can blacken (profitable) with a 50% attack rate on your BI account. How do you do that, questions? With risk reward; Make sure your risk return is on average 2 to 1 (reward 2 times the risk). The power of risk reward is often misunderstood by most traders and underutilized, which makes them lose money. If you do not use risk-return, you need to earn a very high percentage of your trade be profitable, and that is very difficult.
Now, let’s look at an erroneous / hypothetical 3 month sentence from my trading routine. These are not real exchanges that I did, but the graphs you see are good examples of signals with a high probability that I teach in my classes and that you can learn to act. Some of the exchanges in the spreadsheet (losers) are totally invented and understand there.
you will see in the following table that 4 operations were performed in about a month. Note that there were two lost trades and 2 winners, but the winners were 2R, which means 2 times the risk, so a Risikolohnung of 2 to 1. The result was a positive benefit of 2R. For example, if you risked $ 500 per transaction, you would have made a profit of $ 1,000 this month. It is not bad to enter only 4 operations that would require very little investment on your part.
The first winner in the previous table was a good sign for the pin-bar sale on a key resistor, as can be seen below. This trade made 2R. Note, however, that between entry and exit took 2 to 3 weeks. You must be patient, to act for that’s why I always non repaint indicator say that patience is what makes you earn money in trading. Most operators jumped during these two or three weeks in the market and away, lost money and chewed their bills on propagation costs, lost sleep and were generally frustrated and angry. Not you! They exchange the method of 4 exchanges a month!