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Old 06-06-2007, 09:22 PM
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walterw walterw is offline
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Re: Smaller profits yields better results?

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Brownsfan019,

It's seems that you have discovered your style of trading and a comfort level that meets your goals. One suggestion, if I may, is that you incorporate in your trading techniques, "high odds" trades vs. "low odds" trades.

High odds trades have a natural tendency to be associated with low risk (good technical stops based on price action) and good reward potential if successful and low odds trades in a simple form can be viewed as the majority of every thing else.

A significant number of traders understand Reward-to-Risk or Risk-to-Reward ratios, but may not apply them to their daily trading routine. So the more trades you experience and take, if the % is more low odds trades then for example, you will need to ensure that you let some of your high odds trades reach their target in order to offset the losses from the high number of low odds trades, breakeven and then try to make some additional profits. Hence it's very crucial to understand whether you are taking a lot of "high odds" trades or a lot of "low odds" trades.

Once you reduce the number of "low odds" trades you will see significant improvements in "FREE" trades and your profits.
Hi Irushing ... interesting that last term "FREE" trades... what would that exactly mean ? thanks Walter.

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