If 90% of traders fail, why not just do the opposite?

#11
I think that if traders trade exact opposite way they are trading would turn the 90% losing traders into winners? ie instead of going long, short, and vice-versa.

It seem that the best way to trade would be to share real time strategies (with bad, or really bad traders) and simply do the opposite of them? Seems a great way to make money!

Or do the opposite of what you intend to do..i know it would have worked for me atleast on paper..

Why do the vast majority of traders (don't know if it is 50%) fail in the first place? In the long run, assuming nobody knows anything and everybody is doing random guesswork, 50% should make money and 50% should lose (or the market's feedback mechanisms will bring it close) - this is before cost of trades is taken into account.

Once you take cost of trading into account (which includes bid-ask spreads), on an average a random trading strategy will lose.
 

copypasteaee

Humbled by Markets
#12
I think that if traders trade exact opposite way they are trading would turn the 90% losing traders into winners? ie instead of going long, short, and vice-versa.

It seem that the best way to trade would be to share real time strategies (with bad, or really bad traders) and simply do the opposite of them? Seems a great way to make money!

Or do the opposite of what you intend to do..i know it would have worked for me atleast on paper..
yes do the opposite, instead of holding loss making trades in hope that there will be turn around cover those position fast. similarly try holding the winners for longer duration and dont exit taking pennies in profit. Just trying reverting your psychology from crowd psychology to pro trader psychology...

generally i avoid writing now a days but your query compelled me to write my thoughts. My best wishes with you.
 

copypasteaee

Humbled by Markets
#13
trading is not about entries and exits, its about trade management and psychology.

"Mann jeete jag jeet" - the one who wins over his mind can win the world.
 

mastermind007

Well-Known Member
#15
I think that if traders trade exact opposite way they are trading would turn the 90% losing traders into winners? ie instead of going long, short, and vice-versa.

It seem that the best way to trade would be to share real time strategies (with bad, or really bad traders) and simply do the opposite of them? Seems a great way to make money!

Or do the opposite of what you intend to do..i know it would have worked for me atleast on paper..
This question cannot really be answered without considering the actual strategy to be inverted and without considering stocks on which it is bein traded and thier market condition at that point in time.

Still, IMHO, biggest factor/reason for profit as well as for loss is same. It is proper STOP LOSS management.

Even if you were to invert the direction of trade, you would still have to manage it with same stop loss management style (just in opposite direction) and hence your results are likely to remain similar.
 

rkripal

Well-Known Member
#16
I think that if traders trade exact opposite way they are trading would turn the 90% losing traders into winners? ie instead of going long, short, and vice-versa.

It seem that the best way to trade would be to share real time strategies (with bad, or really bad traders) and simply do the opposite of them? Seems a great way to make money!

Or do the opposite of what you intend to do..i know it would have worked for me atleast on paper..
It's not the market, it's the mind...... :thumb:
 
#17
What stop loss is used by more people here for f&o??..i have seen on an average with stock futures with these lost sizes around 7-10 k is the max loss one should take...once it starts to go below 7k it rarely recovers..
 
#19
trading is not about entries and exits, its about trade management and psychology.

"Mann jeete jag jeet" - the one who wins over his mind can win the world.
Sir in your case had you tested your trading system before entering the actual market you are writing draw down does not bother me and profit do not bother me?
 

copypasteaee

Humbled by Markets
#20

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