Hi Everybody,
I think it is important to remind you all that there will be losing trades. This happens with all systems and all approaches. But there are too few Gurus or software vendors that never mention losses, so new and amateur traders find them hard to deal with. But we at MTPredictor are different, and I will talk a lot about losers in this Blog.
Losses can and do happen, but the important part is that they are kept small, at just -1R loss, so even if you have 1, 2, 3 or even 4 in a row (which can happen), then just one +6R profit (like the Russell trade below) will then put you back in profit overall. This is why it is so important to use correct Position Sizing, to keep the inevitable losses small and Profits large.
Lastly, when you are new to trading, it may be better to reduce your initial risk, to 1% for Futures and Forex, and 0.1% for Stocks, in this way the drawdown’s will be smaller for you initially...
Thanks, Steve
I think it is important to remind you all that there will be losing trades. This happens with all systems and all approaches. But there are too few Gurus or software vendors that never mention losses, so new and amateur traders find them hard to deal with. But we at MTPredictor are different, and I will talk a lot about losers in this Blog.
Losses can and do happen, but the important part is that they are kept small, at just -1R loss, so even if you have 1, 2, 3 or even 4 in a row (which can happen), then just one +6R profit (like the Russell trade below) will then put you back in profit overall. This is why it is so important to use correct Position Sizing, to keep the inevitable losses small and Profits large.
Lastly, when you are new to trading, it may be better to reduce your initial risk, to 1% for Futures and Forex, and 0.1% for Stocks, in this way the drawdown’s will be smaller for you initially...
Thanks, Steve
Posts
