How do I avoid useless/conflicting information?

Beginner Questions
22

Why is Dec a slow month for trading?

23

Not if you trade long-term, its as good as the other 11.

24

Because of the winter holidays. People are either preparing for them or theyā€™re already celebrating.

25

Thanks! That makes a lot of sense

26

Hi justshell, Holiday month, banks/financial institutions slow down w/ cash flow, finish up year & prep up for new year, FX slowest month via history. Should you continue to trade, like me, suggest using long time frames. Daily,12h,8h,6h,4h lowest. Best to ya buddy.

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27

Yeah, if ya sit back, look at markets overall common sense comes into play, makes trading kinna fun.

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28

Thanks! I love this type of stuff. Itā€™s fun to me. My goal right now is just to perfect my trading strategy in order for me to have a higher winning percentage. I just want more wins than losses overall lol

29

Thatā€™s a really bad goal.

A much better one would be ā€œto make more from your winners than you lose from your losersā€.

It may actually be (and often is) easier and better to do that with a lower win rate than a higher one.

Bad plan. Hopefully youā€™ll change your mind about it, as you get more experience.

3 Likes
30

I understand what youā€™re saying. I still want more wins than losses lol

31

Thatā€™s a real shame. :unamused:

Would are a little reading list of information to enlighten you a little more on this subject be helpful, or just annoying to you?

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32

Sure, Iā€™m always open to new information. I just donā€™t understand why itā€™s not okay for me to want more wins than losses

33

For several reasons.

Including the fact that high win rate methods normally precede accidents, the fact that dealing-costs account for a higher percentage of their turnover than is true of other methods, and especially the fact that itā€™s completely the wrong statistical focus which leads beginning traders away from a correct understanding of statistics, for trading purposes, rather than towards it. (It also means that you can easily reject out of hand very profitable methods with lower win rates while using up all your time looking at the systems which are most likely only to work temporarily anyway.)

I suggest you read Michael Harrisā€™s book: Profitability and Systematic Trading - he explains it in basic terms, and reading that may encourage you to be a little broader-minded on this point.

It DOES actually matter, because at the moment your beliefs are actually reducing your overall chances of success.

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34

I canā€™t beat Charlieā€™s explanation, but it really is a pretty important thing to understand as early on as possible, Justshell.

(Van Tharpā€™s beginnersā€™ book also explains it pretty clearly.)

2 Likes
35

I appreciate this a lot. I will definitely do more reading up on this subject and even check out the book you mentioned. I want to make sure Iā€™m thinking the right way so it can help me to avoid some of the forex pitfalls. Thanks a lot, Charlie & Lukas :slight_smile:

1 Like
36

it is ok to want more wins than losses
however the thing is that different people have different strategies,

at the end of the day it call comes down to Mathematics and Statistics
there are benefits and Cons to trading in a manner with More losses than Wins
and there is the same thing when it comes to trading with More Wins than losses

so itā€™s not strictly correct to tell a newbie that they should not expect more wins than losses

but, IT IS CORRECT TO TELL A NEWBIE, donā€™t get bloody excited and hold your horses because you are not going to be a millionaire overnight and that it is possible (as strange as it may seem) that you having more losses and less wins can actuallly result in more profit

the beginner should understand that both are possible and the beginner should sit down and work out what strategy is best for them based on the goals they have
simple as that

37

I will stay away from conflicting information . Some times much info confuse you. The best way is to watch market and do your analysis on the base of your experience. DO not go to every source to find trend all say different then what will one do. He should remain focused to some basic things.

1 Like
38

It is true there are many info that can misinform traders. indicators, news charts . if we see all we can be confused. The only way to get rid of confusion trader should test these info on demo as well as make himself good in analysis. This is much reliable than to rely any other info. Not use much indicators .

39

I am glad I ran across this discussion. As a NEWBIE this the kinda stuff I craveā€‹:+1::chart_with_upwards_trend::gem:[quote=ā€œjustshell, post:35, topic:120046, full:trueā€]
I appreciate this a lot. I will definitely do more reading up on this subject and even check out the book you mentioned. I want to make sure Iā€™m thinking the right way so it can help me to avoid some of the forex pitfalls. Thanks a lot, Charlie & Lukas :slight_smile:
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