Posts tagged winning
The Four Keys To Identify Winning Trading Strategies – Day Trading Success Secrets
Sep 2nd
Most traders are on a constant quest to discover winning trading strategies. And yet, very few Traders are ever able to find and successfully implement these winning trading strategies.
Why is that? What is it that is so elusive about them? Where can you go to find the most powerful and accurate winning trading strategies available?
The fact of the matter is that most well-thought-out day trading systems and strategies can and should be winning day trading strategies IF the Trader has discipline – both in following the day trading strategy exactly, and also in sticking with the trading strategy.
Yet it seems that most day traders will try what should be a winning trading strategy just once or twice, and if it doesn’t immediately yield positive results, these traders quickly abandon the day trading strategy and move on to the next “winning trading strategy”.
And these same Traders wonder why they can NEVER create consistent Day Trading success – why they can never lock in on that one winning trading strategy.
To help you along on your quest, we’ve created a four-step punchlist for you to follow as you continue your quest to identify winning trading strategies. Pay close attention to this list – it could be the “game changer” you’ve been looking for as a Day Trader.
The Four Keys To Identify Winning Trading Strategies
1. Keep It Simple, Stoopid! The best day trading systems and strategies are also the easiest to learn, understand, and master. The more complicated a trading strategy (and believe me, in the world of technical analysis, there are PLENTY of ultra-complicated trading strategies), the less like you’ll ever be able to turn it into a winning trading strategy for yourself.
When looking for winning trading strategies, find those that are simple, easy to execute, and that don’t require an advanced degree in statistical theory to comprehend.
2. Speed Is Your Friend. The longer you’re in a trade, the more time there is for something to go wrong. When searching for those elusive Winning Trading Strategies, find one that allows you to be in and out of a trade very quickly (my average trade lasts less than one minute).
Find day trading systems strategies that don’t focus on “long term” trading (i.e. anything longer than a few minutes) – it’ll be better for your trading account AND your stress level.
3. Don’t Be A Stock Chart Zombie. Most (nearly all) trading strategies require you to spend hours and hours a day chained like a slave to your computer, making trade after trade after trade, all…day…long. Is that really the life that you’re looking for? Wouldn’t it be better to be in, out, and on with your day?
In fact, The Guerrilla Trader slogan “get in, hit your target, get out…like you were never there” is speaking directly to this idea. The problem is that MOST trading strategies require you to watch for indicators that will “predict” when market movement will happen, and also which direction to enter the trade.
Wouldn’t it be easier, and flat-out BETTER, if you already knew exactly when market movement was going to happen, and then how to take advantage of that movement? The less time you have to spend executing a winning trading strategy, the more like you will be to maintain your discipline as a Trader. Speaking of…
4. Maintain your discipline. No matter what trading strategy or system you ultimately decide on, discipline is absolutely 100% necessary for you to become a successful trader. You MUST maintain your discipline as you execute your chosen strategy, and also as you keep working at perfecting it.
Lack of discipline has perhaps ruined more would-be Traders than any other flaw. Even as an experienced Trader, I sometimes find myself growing impatient with my winning trading strategies (even though these strategies that I use develop almost instantly and I’m usually in a trade for less than a minute). And its when I veer off course of these winning trading strategies that I find myself limiting my profits, or even turning winning trades into losing trades.
As a day trader, there is no characteristic more important in your trading practices than the ability to exercise a high level of discipline. And ironically, there is no trading skill that is harder to master than unbending, unyielding discipline.
So there you have it – the four keys of identifying winning trading strategies. Of course, not all trading strategies are created equally…
A Day Trading Strategy with a 90% Winning Percentage?
Jul 14th
Day traders cannot avoid losses. If anyone tries to sell you a system that has no losses, or even as little as 10% losses, you can be sure that they are unreliable. The fact is that traders engage in a very risky endeavor, and, even with the best plans, the markets will do unpredictable things.
One point to be careful of when researching strategies is the idea of a “winning percentage.” Many day trading programs will tell you that they have a winning percentage of over 90%. This sounds wonderful, of course, but what does it really mean? Does it mean that they profit from 90% of their trades? Does it mean that they always profit with an additional 90% of what they put in? By itself, this statistic tells you nothing.
You can get away with making your winning percentage sound better than it really is. In day trading, your “winning percentage” is a function of the ratio between your stop loss and your profit target. If you increase your stop loss and decrease your profit target, your winning percentage will go up.
Unethical advertisers will make their winning percentage seem better by using the following trick of statistics. An average trader may set a stop loss of $200 and a profit target of $300, which would give them a winning percentage of around 60%. But if you increase the stop loss to $2,000 and decrease the profit target to $100, the winning percentage might climb up to 90%.
This increase in winning percentage does not actually mean that the system is more profitable. While the winning percentage increases, the average profit per trade decreases. Therefore, most of the profits on this example would likely be eaten up by commissions, actually resulting in less real gain than the lower winning percentage.
Most reasonable day traders look for winning percentages between 60% and 80%. But the important thing is that they look at this statistic alongside others. You also want a profit factor of around 1.3-2.5 and a maximum drawdown of 10-20% of the yearly profit. With these other numbers mixed in, you can be sure that the decent sounding winning percentage actually translates into real profits once all the numbers have been crunched and commissions paid.
You should also be aware that different types of systems usually show different winning percentages, although, from this information alone, you will not know how profitable they can be. Most trend-following systems have a winning percentage of 55%-65% while trend-fading systems typically have a winning percentage of 65%-80%. But some trend-following systems can actually be more profitable than trend-fading systems that have higher winning percentages.
As the saying goes, the devil is in the details. Beware of looking at one statistic alone when researching trading strategies. Be sure you understand all aspects of a plan before putting it into practice, not just the most dramatic numbers. It may turn out that the right mix of modest sounding numbers is actually vastly more profitable than the one with the shining, blinking “90% Winning Percentage” stamped on the front.
As we all know, if it sounds too good to be true, it probably is. Statistics can be manipulated in a number of ways, and you should understand exactly what they mean before committing to a program.
Incoming search terms for the article:
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Apr 15th
If you’d like to make a great living through online forex trading, but don’t have an idea how to, then automated forex software might be the answer . The great thing about collaborating in online forex trading is that you can make unlimited profits no matter your age, education level, work experience and even where you stay. Read on for more info about forex autotrade robot system and multiple currencies of forex trading.You can practically get made from anywhere in the world…in fact, many investors have left their roles to get full time traders, and they are loving it! But now the bad news. Get more details about forex autotrade robot system and multiple currencies of forex trading below.
Majority of new forex traders do not possess sufficient experience and knowledge to trade confidently in forex market. Read on for more about forex autotrade robot system and multiple currencies of forex trading. I have personally tried out some of the forex research software available on the internet. The point of using software will be defeated unless it is capable of providing correct guidance to users. One of the major blessings of using software is that it completely loses the emotional facet of human trading. More details about forex autotrade robot system and multiple currencies of forex trading below. As a tool it is terribly helpful in logically building whether to trade or not. Compared to software research, manual analysis can be long. Human intervention is minimal in completely automated trading systems. Such systems carry out transactions through and through. Do visit our site for more about forex autotrade robot system and multiple currencies of forex trading.
Though there are sufficient opportunities to make profits in forex trading, you can attract losses too. Even professional traders frequently mess up and incur losses due to wrong trading decisions. Using forex analysis software is one of the best methods to make near accurate trading decisions. For more about forex autotrade robot system and multiple currencies of forex trading, do visit our website. Human errors, based totally on feelings can be completely avoided by using automated forex analysis software. Forex software is favored with new traders but no seasoned trader would ever use one of the cheap, heavily marketed Forex androids or Expert Advisors – why? Because its plain, they do not work and here we will look at why they lose money. The fact is these systems never present, determined results over the long run. All of the vendors do is simulate backwards and bend their systems to fit past price information and of course, they are making a profit but it’s not precisely hard to earn income, when you know the closing prices in advance!
I saw one system, that risked many thousand bucks to make less than a hundred! Now, you would only do that going backwards, as you know you will make a profit but in the real world of trading this is madness. When these systems are traded for real and do not know the price in advance, all of them lose swiftly. There are some vendors who claim real money gains but they never produce any evidence that has been checked by a neutral party. I wouldn’t want to rely on figures from a vendor selling the system and most savvy traders wouldn’t do so either.
The newly launched Forex MegaDroid software can be your dream solution for receiving Forex signal and fixing it right way. Do see our site for more details about forex autotrade robot system and multiple currencies of forex trading. The software is new, however with its inbuilt technology, together with fast and accurate results have made it the best software available in the market.
