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Re: How To Improve Your Trading
I didn't believe or understand the 80/20 rule till I was in a sales job. As a broker, my ratio was more like 85/15 where 85% of my income came from my top 15% clients.
I would be interested to see the translation into full-time trading though... I guess you could break down each of your setups and see what kind of winning percentage results from those. For example, if the XYZ setup produces a profit 80% of the time; whereas the ABC setup only produces a profit 30% of the time, it may be best to focus your efforts on the XYZ setup. Of course, this type of analyis would require constant and detailed tracking. There's many ways you could break it down... by setup, by time of day, by day of week, by time of month, etc. etc. It could be very useful but would require detailed documentation over an extended period of time.
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