Day Traders | Day Trading - A Day Trading Strategy With a 90% Winning Percentage?.

  Day traders cannot avoid losses. If someone tries to sell you a technique that has no losses, or even as small as 10% losses, you can be sure that they are unreliable. The fact is that traders engage in a dicy endeavor, and, even with the best designs, the markets will do unpredictable things. One point to remember is to be cautious of when researching strategies is the idea of a "winning percentage." Lots of day trading programs will tell you that they have a winning percentage of over 90%. This sounds wonderful, of work, but what does it mean? Does it mean that they profit from 90% of their trades? Does it mean that they always profit with an additional 90% of what they put in? By itself, this statistic tells you nothing. You can get away with making your winning percentage sound better than it is. In day trading, your "winning percentage" is a function of the ratio between your cease loss and your profit target. In case you increase your cease loss and decrease your profit target, your winning percentage will go up. This increase in winning percentage does not actually mean that the technique is more profitable. While the winning percentage increases, the average profit per trade decreases. Therefore, most of the profits on this example would likely be eaten up by commissions, actually leading to less actual gain than the lower winning percentage. Unethical advertisers will make their winning percentage appear better by using the following trick of statistics. An average trader may set a cease loss of $200 and a profit target of $300, which would give them a winning percentage of around 60%. But in case you increase the cease loss to $2,000 and decrease the profit target to $100, the winning percentage might climb up to 90%. You ought to even be aware that different types of systems usually show different winning percentages, although, from this information alone, you won't know how profitable they can be. Most trend-following systems have a winning percentage of 55%-65% while trend-fading systems usually have a winning percentage of 65%-80%. But some trend-following systems can actually be more profitable than trend-fading systems that have higher winning percentages. Most reasonable day traders look for winning percentages between 60% and 80%. But the important thing is that they look at this statistic alongside others. You also require a profit factor of around one.3-2.5 and a maximum drawdown of 10-20% of the yearly profit. With these other numbers mixed in, you can be sure that the respectable sounding winning percentage actually translates in to actual profits three times all the numbers have been crunched and commissions paid. As the saying goes, the devil is in the details. Watch out for taking a look at statistic alone when researching trading strategies. Be sure you understand all aspects of a plan before putting it in to practice, not the most dramatic numbers. It may turn out that the right combination of modest sounding numbers is actually vastly more profitable than the with the shining, blinking "90% Winning Percentage" stamped on the front. As all of us know, if it sounds lovely to be true, it probably is. Statistics can be manipulated in a variety of ways, and you ought to understand exactly what they mean before committing to a program.  

Day Traders | The Power of Day Trading with Weekly Profit Goals.

Day trading attracts lots of hype. Slick vendors need you to think that you can trade whenever & wherever you need. You could even be on holiday & make money simultaneously. They push the picture of someone with a laptop computer on the beach, ticking off profits in between swimming, building castles with the children, & taking romantic walks with a tanned, pretty someone by your side. Click Here First, the beach is a sunny place. Of work, you are saying; that is why it ought to be a wonderful place to do business! But someone who has taken their computer outside knows that the sun makes it impossible to see the screen. Add to that the issue that my eyes are light sensitive, which means I must wear sun shades (which are also necessary beach wear). So not only is it bright to see my laptop's tiny screen already, but I must put dark shades between it & my eyes. The only solution I found is draping an extra-large beach towel over both me & my computer. But, of work, this defeats the purpose of being out in the sun at the beach, & my children were embarrassed to be seen with me. This dreamlike picture is, of work, a dream. You cannot trade at the beach. &, think me, I have tried. I have completed my best to live up to this dream of making money in luxurious leisure. But there's some serious issues with that picture of the laptop computer at the beach. serious issues in fact. Second, the beach is sandy. Again, you may think this is an obvious observation, but it is a point those vendors neglect to remind you of when selling you this fantasy. Sand may look stationary, but, think me, it is an explorer at heart. I found sand in places I'd forgotten I had. But, while I can take a shower, my computer cannot. & nothing clogs up a laptop computer fan faster than a few grains of pretty white sand slowly grinding down all of your laptop's most intricate parts. Third, being at the beach was supposed to be a holiday, not work. My idea of life on the beach includes sleeping in, enjoying a pleasant breakfast, & then slowly beginning the day. But day trading brings its own schedule with it. The best moves in the markets happen in the first hours after the opening. In the event you are somewhere on a beach in Florida, then you are in luck. You only need to get up by 8 in the morning, Eastern Standard Time, so you can start trading the Euro & the Interest Rates at 8:30am. But if your idea of a beach involves the Pacific Ocean, set your alarm for three in the morning! & Hawaii? Why even bother going to bed?

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No, the fact is that day trading is not like sitting on the beach at all. It does, in fact, need work. Even in the event you can discover a wireless connection out by the water, you are still going to must chart trends, research markets, & watch your trades. The fact is that the beach is distracting. It is supposed to be. But distraction is the last thing you need when a market is quickly trending down, & it is already past your cease loss. All the fun you had splashing in the water while the market kept dropping won't appear as fun when you get back to the computer, no matter how plenty of great pics you now have. In fact, you may finish up having to sell that digital camera & hitchhike your way back home in order to cover your losses. Click Here No, day trading as well as a day at the beach are not meant to mix. They are better served by day trading now in order to enjoy even more days in the sun & sand later. So wipe that picture of the sun-drenched laptop computer from your mind as quickly as you wipe sand off your posterior, & get back to work. It will make the holiday all the more enjoyable when you can afford it.