It has been said that there are basically two different ways to increase your net results your trading.
The first is to improve the number of winning trades verses the number of losing trades.
Example you are currently making 6 winning trades for every 4 losing trades.
You can try to increase the number of winners to 7 for every 3 losing trades.
The other option you have to improve is by increasing the size of the winning trade verses the size of the losing trade.
Example you are currently making 10 pips on a trade that has a 7 pip stop loss.
You can try to increase the number of pip profit to 17 or 20 pips per trade try to reduce the stop loss to 5 pips.
By examining both of these approaches improving them even just a small percentage you will see a tremendous improvement in your overall trading performance.
Analysis testing is the key to this exercise.
In the beginning of my trading career I read many articles that explain how a trading system that produces a winning ration of 50/50 can still produce a profit.
At first this doesn’t seem to make any sense why would someone want to trade such a system?
Well to explain the examples above… The trading system could produce a profit if the winners were twice the size of the losers.
So by combining these two analytical approaches you can improve your trading system you will make money consistently over time see superior results.
Another method I use to increase my winning ratio is to stay out of the market when it is behaving in a manner I do not underst. I also try to avoid trading anything I do not underst or when I do not see my trading method. This is where discipline comes in. How many days have you come to work to trade you find yourself trading only when price is moving not your real trading method?
Waiting for your trade to come to you is one of the keys to conserving capital growing your account.
Searching for the holy Grail is a common situation that many of us find ourselves chasing after. I feel that the holy Grail lies in ourselves. Our experience discipline ability to find the truth is where the holy Grail lies.
Licensed Brokers
Linear Mode
