So you have obeyed the gurus, who told you that in order to be profitable, you must have your target at 3 times the distance to your stop; and that that should pretty much ensure your success. You have done it, but you equity is still going down. Now you want to know what is … [Read more…]
How many instances of the setup to examine. In Part 1a and Part 1b of this series of posts, we examined how to determine the likelihood that our exits will be hit. In that particular post, we posited looking at 100 setups, and I said that that was because it made the analysis simpler. Heard … [Read more…]
What do the counts mean? In Part 1a, we examined how to determine the likelihood that our exits will be hit. In that particular post, we posited looking at 100 setups, and I said that that was because it made the analysis simpler. Our first order of business is to use our counts to determine … [Read more…]
Starting with the basics “Trading with Expectation.” What a strange statement? Do we not always trade with expectations? Of course, but the word I used is expectation, not expectations. There is a difference; and it is not just the “s” at the end of the word. Every trader has expectations, usually of gain, when they … [Read more…]
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