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Perfect trading is not good trading:

BY READERS DIGEST

21st Sep 2021 Technology

Perfect trading is not good trading:

To make it short and painful: no ideal business plan is available. Losses in trading are necessary.

 

Losses in trading are necessary. Yes, HFTs have posted the winning day after the last five years, but allow me to tell you a secret: you are not an HFT trading outfit. These HFTs often lose – only a million shops are set a day, so their edges are quick.

So stop hoping and accept your loss. You lose. An ideal trading system will make money over time, not one that will make money with all exchange – that is utopia. ONLY you begin to make money; ONLY you agree also to lose money. Old story, I know, but this is one reason you are not yet profitable. You still believe that you are more intelligent than the market, and you are still searching for a Best uk stock trading platform strategy with a 100 percent win rate dear inside your Lizard brain.

Curve fitting is disaster request:

If you ever want to develop your trading scheme, you must be very careful even though it turns out that it is profitable. The trading system is a susceptible building, and the risk/reward ratio will change every time you change a parameter. This way, the difference, average draws, average updraws, etc.

Change in the trading method, based on robust data, should be gradual and step by step. Your approach, therefore, remains too close to the past, leaving little space at all for shifts in consumer behavior in the future. However, as we all know, markets are continually changing and respiratory.

Fitting a device too close to past data can cost you a great deal – the fundamental problem of any backtest. This is why, in backtesting, you can always use an out sample – if you have three years of information, build your method in 2 years and test it in the third year, regardless of results in the third year.

You have to decide where you are standing as a trader at one point:

You may already have a successful trading scheme in your hands; you don't know it, only because you want to tweak it for every losing trade to stop a loss you've just taken. It means, however, that you change the scheme and open it to other future losses.

You absolutely must at some stage agree that your system loses trades; it is the essence of trading. Nobody ever would even consider trying to gain every hand they play; it's a ludicrous and utterly crazy thought.

You know that you have a good outlook and the system makes your money – what more are you looking for? You still have around 95% of the people who have ever taken their footsteps in this market.

It will help if you strive for excellence rather than perfection:

If your dream of setting up the "Magic Strike Rate Trading System" cannot be met, what will remain? Outstanding excellence! You must ensure 100% compliance with your scheme. Even the minor deviation is not permissible. Make sure your output always reaches the peak. Try excellence and count every company!!

Any business you do outside your trading system is an insult to yourself, to your time and effort, and respect for yourself.

Excellence is just about ultimately loving yourself. When you respect yourself and trust your capabilities and your method, following your system would be more straightforward and more accessible.

If you have a run of loss, see if the market dynamics have changed flawlessly and if so, did you do anything else?? You must remain on course throughout the loss of stripes and obey your system while understanding how you lose. If nothing is to be done, well. This represents any skilled trader's process-oriented thinking that must live by.

You're going to survive the storm, take a losing stream of pride, protect your resources, do every trade with excellence.

Conclusion:

What is undoubtedly true of bits and bytes is also true of the trading world. Be pleased with it once you make it. Never doubt your system until you start losing regularly. And always assess whether you have applied your scheme false or whether the market conditions have changed so much that your system has been defeated. 

It will also greatly help you to implement your business with excellence and to develop discipline with immediate features like the Tilt-Meter.

And even if you won't invest your money in our boy, a trade journal is still a MUST. It helps you execute your strategy, enables you to transform a losing system into a winning system, and helps you retain the winning design as it is – winning. Be not covetous, be not a perfectionist. Be a good dealer who knows the loss is part of this game.

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