Monday, 9 May 2016

TRADING PSYCHOLOGY - I LOVE 3 STRAIGHT LOSS

So far with my trading with Parabolic sar, I've observed that after a series of 2 to 3 losses the next trade will be a huge positive return.

As you can see from the previous post that the market moves sideways and I was stamped out for 3 times.

Past performance does not guaranteed future results, but it only shows that losing is part of trading.

Just like in any business, you will not always have a big sales or big income. Same with trading losing is part of the game.

As long as in the long run whether you have a 50% win 50%lose, but the risk reward ratio of you trading is good, you will have a good return at the end of the month.

I want to share the winning and losing percentage of my parabolic sar system.

As you can see lowest winning percentage is from April 2016 and the highest winning is March 2016.



But counting the pips per month I was surprised that April 2016 is the highest and March 2016 is the lowest. This only shows that even if we received a 40% winning percentage on a single month we still have a positive outcome of this system.

This shows how a good risk reward ratio is very important whether you have a good system. 

Remember that it is important to know how much earn when you win and how much you lose when you lost.



  

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