Winning Strategy

[BenjaminGates]

Recently I read in a book that a winning strategy must include losing. Basically a stock trader shouldn't expect to not take a loss forever. Profits and losses are part of the winning strategy only that for a given odds the profits must outweigh the total loss from all losses. And also that the odds of making profit doesn't change after you have made a profit.

Once you start thinking that odds remain the same and be willing to accept losses as many times as the odds indicate, you may just have a winning strategy if the profits of those few trades outweigh the losses form the rest. This is actually the entrepreneurs strategy. But I am trying to put into stock trading practice.

 

[angelnish]

YES. We have consistently winning strategy and that is Jobbing. It is not that we take 100% winning trades. But we do take almost 85-90% winning trades with Risk and Ratio of around 1:2.
*****(End of the Day we make money with safety.What Active Trader need rather than this?)******

Below attached is the illustration of the same.

I believe in my trading strategy completely and whole heartedly ---- Its critical to your trading success that you learn and trade with a strategy thats proven and that you personally enjoy trading with. You have to follow it without deviation by remembering the fact that one loss does not negate the whole trading strategy. Dont jump from one strategy or system to the next just because you stumble upon a few losing trades; losing trades are a natural part of any trading method. The key lies in losing trades properly and making sure you are trading with a strategy that is both simple and effective, like price action.

 

[Reggie]

Well said. Could'nt agree more.

 

[angelnish]

Well said. Could'nt agree more.

Thank you Reggie....continue to post more strategies..

 

[BenjaminGates]

Thanks to everyone who voted for the poll. If you haven't yet, please vote.

Thanks to angelnish, for the golden words.

I have voted my own too which is.. "I have a winning strategy that includes losing". And it is working.

 

[johnnypareek]

well,

One vote for "I have winning Stra... "


:clap::clap:

 

[smartcat]

There is no business in the world that makes money (more income than expenses) every single day/month. Even a successfully running roadside chaatwaalah will have negative P&L on some days (when he buys new supplies, for example).

Why should trading be any different?

All winning strategies will have losing days/months.
All losing strategies will have occasional winning days/months.

But all winning strategies will have positive P&L by the end of the year/3 years.

 

[desiwarrenbuffet]

Having a strategy is very important.If we enter the sharemarket without any strategy,we may panic and loose all our money and quit trading