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Time & Risk PROFITABILITY Cutting Losses Trading Plans Liquidity
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You have to be very, very good before you allow yourself to be bad. % WIN simply measures your winners against your losers. If you make money on 3 out of 4 trades, your % WIN is 75%. See how the average loss changes from the 75% to 25% levels. High % WIN traders can take much higher losses than low % WIN traders. Scalpers tend to be higher % WIN while position traders tend to be lower. The amount you can risk on any trade shifts dramatically with small changes in % WIN. Here's the kicker: most professional traders have a % WIN under 50%. Guess how they got to be professionals?
Next Step:
Risk & Money Management (PDF)
The Matrix (PDF)