Alert all traders!

ALERT TRADERS!!! Did you know that you don’t have to have a high win rate to be profitable??
Why you ask? Risk vs Reward will keep you in profit. This is where you aim for your trades to make 2x or more what you risk. Example: Risk ($100) & Reward ($200+). Some of these trades will result in 3x or more that is ideal, but when you have strong money management like this you will be able to remain in profit with out having a high win rate. Try it out. If your trade will get you 2x or more your risk then that should give you more reasons to take it as long as you have a price action signal to go along with it and it is well formed then you are set to go.

Yes there’s not one and only way to be profitable in Forex.

But… could you keep your mind free of anger, greed, fear…

Having a system with a poor win/lose ratio would make it difficult to keep confidence in it! Having a row of 10 losses would have you thinking: hey, did the market change it’s behaviour? it’s my system not profitable lately? what’s wrong with me, could it be I’m in no condition to trade now?

In my humble opinion one should always aim for a high win/loss ratio, as that would help with confidence. At least for complete noobs like me who can’t keep their emotions aside! :smiley:

Yes, I do understand it is frustrating to lose trades. Losing is part of the business ideally you don’t want to lose 10 trades in row. Thats where your patience and trading high probability setups comes into play. Most traders don’t realize that patience is the best thing to have when you are trading. You have to know what you are looking for and have a plan and a checklist that allows you to enter trades with confidence.

It doesn’t work that way. If your system has a low win %, a single loss will not affect your psyche. A single loss for a high win % is that much harder to reconcile mentally.

I currently use a system that has an extremely low win % and I have no problem accepting my losses (up to 18 times in a row).

Ah I see… but how do losses don’t affect you? I mean, having a high win percentage system does not mean losing more when you do.

Or do you mean you take trades with a beforehand mindset of not bothering with losses? That way seems hard for my psyche even when having tight money management rules and not losing a lot each time :confused:

Did you post your system somewhere so I can take a look?

No, I didn’t post my system on here.

There are two very simple ways to decrease your emotional investment in the market:

(1) Never ever trade money that you cannot afford to lose. Do not re-finance your house, sell your car, kids, guard dog, and definitely do not give up your day job for a while.

(2) Accept your system unconditionally. When you are trading, you must never question your system. If your system is something you’ve devised through the shedding of blood, sweat, and tears, that means that you are making decisions by proxy. Thus, have full confidence in your system because that means you have full confidence in yourself to play the market. Only analyze the market and your system post-hoc, i.e. when all trading has been done for the day/week, preferably over the weekend or something. Trading is trading and studying is studying.

Thank you for the tips Barb, will surely help me now and the future! :slight_smile:

It sounds completely crazy, but thats certainly what I experienced.