Before discussing design options to the latest articles, let me say something about searching for the Holy Grail. I've lost count of the number of traders who approach me because they have burnt in the markets and want to know how to achieve it. This is quite logical, since we both had the same definition of success.
When I trade, I want to make outstanding returns for a long time, and from the "far" I mean at least one year; I don't know if I will make money tonight, this week, or even this month.
But some people "success" means you win more time and having never losing streaks. You may argue that this is not the case, but I know it is because I have seen too-many of them leaving the markets after a losing.
Miss is tough.You can look at someone else's trading journal and note that you do not do very well for two months, say, the beginning of the year, but then the rest of the year was fantastic ... think: "that's okay. I would certainly like to you! "But you can have the privilege of hindsight.
The two months at the beginning of the year probably seemed endless for the retailer, which may have been tortured by thoughts that the system has stopped working or "market had changed". Are you really so sure you will have the courage to stick with the plan, such as your hard earned capital power away?
So I understand why people want a Holy Grail winning consistently, with little variability, and none of these drawdowns undermines morale that strikes fear into the heart of the trader!
Unfortunately, because to my knowledge, does not exist.Leveraged Trading futures is a high-risk activity that high-risk investments because we can yield very high yields.It is important to understand that high risk means exactly what it says-there is a risk to lose much. my work is about managing high-risk business environment because it CAN manage risk.Can do, but it cannot be removed!
Each trade you make is essentially a bet; threatens some money in faith or hope that the market will move towards you in the future.We have no way of knowing the future, so that the risk of losing it.And you may lose many times in succession, even though our business plan is a winning edge.
About once per 256 coin flips, probability theory I says to wait to get a run of eight heads (or queues). If it is heads-on-a-win, tails-on-a-loss, I occasionally have to withstand eight straight losses, although each pitch is a 50-50.
In future articles we'll present the alternatives and will talk about why you might prefer one or the other; perhaps even recommend a-not because I think it is the "right answer" in any case, but because I think it works best on average over a long period of time.
To be a trader, you have to learn to do something that most people find very difficult; you must learn to live comfortably in the world blurry uncertainty! sad reality is that most aspiring traders fall within this Living with uncertainty obstacle. terrifies them and to leave the game to return the comparative predictability of work with the weekly check payment.
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