Tag Archive for 'Forex'

Trading Psychology Benefits

System with a high percentage of winning trades are preferred psychologically. Nobody likes losses. Everyone loves a profit. Systems that bring frequent losses and make money at the expense of rare deals with large profits unpleasant in real life. A series of demoralizing losses always, regardless of your expertise or experience.

A series of lucrative deals are always pleasant, builds confidence and self-esteem, in addition, augment your capital. We often hear about the wonderful and profitable systems that are, nevertheless, have been "dumped" by their users because of waiting too long profits. This usually happens with a trend-follower systems with low winning percentage. Trade in such systems require uncommon faith and patience titanic. Not surprisingly, many traders trying to sell such systems to tolerate neudachu.Sistemy with a high percentage of profitable transactions usually have a low DrawDown.

Assuming that the largest loss on the transaction is strictly limited (and this is necessarily a good system), the catastrophic DrawDown more likely a series of transactions in which a lot of unprofitable and very little profit. Obviously, when a high percentage of winning trades is less likely a long series of deals with a rare win, and frequent losses. If we can create a system with a low average loss and a high percentage of winning trades, then this will be a system with good protection against large DrawDowns.Sistemy with a high percentage of winning trades to strengthen discipline traders. How often have we heard stories of traders who follow his system, but after a series of losses, decided to skip the next deal, which eventually turned out very profitable? This is not just another story in a series of tales of horror.