Since there have been markets to trade, traders around the world have been looking for the holy grail of trading – a system or method that tells them exactly what and when to buy and sell to take maximum profits. There is and will never be a “Holy Grail” trading system.
The Fallible Concept of the Holy Grail
Now, if you think about it logically, if such a system or method existed, all traders would soon discover this and all would trade its signals in lock step, and, of course the markets would then cease to function, because when all were buying, there would be no sellers; and when all wanted to sell, there would be no buyers. The truth is and always has been that the holy grail of trading simply does not exist ‐ never has and never will. That’s the bad news. The good news is that the holy grail of trading is not required to trade successfully in the markets.
It’s all about the Odds
What is required are good trading methods that point you in the right direction to take advantage of higher‐probability, lower‐risk trading opportunities that set up in all markets over and over again. Now, this does not mean that every trading opportunity will be profitable or that losses will not be taken. But it does mean that with good trading methods you will have an edge when trading the markets that should put the odds in your favor.
95% of all Retail Traders
100 Trades a Month Average
Risk 1% to Gain 1% of Account Balance
With only a 50/50 Win/Loss Ratio
Wins | Losses
50 50
*1% *1%
+50% -50%
Total % Profit/Loss = 0%
Excluding commissions, slippage, etc.
5% of all Retail Traders
10 Trades a Month Average
Risk 1% to Gain 3+% of Account Balance
With only a 50/50 Win/Loss Ratio
Wins | Losses
5 5
*3% *1%
+15% -5%
Total % Profit/Loss = +10%
Excluding commissions, slippage, etc.
I Love Losers!
So by definition, there will be losing trades; in fact, losing trades are quite common when trading. Just because a trading method puts the odds in your favor does not mean you will not experience losses. And that fact leads to one of the keys to trading success. That is, you must learn to CONTROL AND EVEN LOVE losses. The whole idea around trading is to win more than you lose and to stay in the game, so that you have the opportunity to come out a winner. If you risk too much on each trade, then you can easily deplete your account size down to a level from which there is no recovery. A series of losses could wipe out your account altogether which, of course, would knock you out of the game with no chance of recovery from the profitable trade potential that followed. So you must control losses first and foremost.
It’s all about the OPPORTUNITY!
Controlling losses is referred to by many names such as risk management, money management, account risk management, stop loss orders, portfolio risk management, limit position size, etc. But they are all referring to the same thing ‐ keep your losses relatively small in relation to your account size so you have the opportunity to trade over a series of trades that has a positive expected outcome where any losses are more than covered by the profitable trades. Once you understand how to control losses, you still have to have a good trading method that will guide you in scanning the universe of currency pairs and ETFs to find the very best trading opportunities at any given time. A good trading method, using primarily technical analysis, will define fairly objective setup conditions, entry rules, stop loss rules, and exit strategies as well as the scanning criteria necessary to find those currency pairs and/or ETFs that are likely to meet the method’s setup conditions. Our Fusion Trading System meets these requirements and so much more. For more information visit our website www.fusiontradinglive.com
In as much as traders can react to the market in a few seconds, robots have the same features. best expert advisors can execute a trade within the swipe of a finger, making it beneficial for traders who don’t have time or understand the dynamics of the market. The dynamic nature of the market gives traders a whole lot of opportunity to trade the market without wasting time on the next action
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