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I don’t know about any entry signal that would never produce false signals. Imagine you just made $100. Would you now stop trading, retire and buy an island in the Caribbean Sea? Probably not, because $100 is not enough to do that.
Sometimes regular profits may not occur. Most people get that. But it is a totally different thing when it comes to bad emotions.
When you look at the chart, you will see that the signal output is always there. But you might not always get a signal right away.
In reality, you would expect to throw the dice 6000 times and get nearly 1000 results for each number on it.
My computer can do the trading for me. I can’t understand why so many people refuse to use this kind of blessing. But you are free to make your own choice. Back testing is a good way to find the right settings for an automated system. But you actually need to do it.
Have you ever noticed that the candles on the chart never reach the upper or lower end of that chart? Why is that?
I always encourage my course members to start with a demo account and trade that for at least three months afterwards. The next best thing would be to use a socalled cent account.
Most people might say that they have no problem if the system is profitable. But sooner or later you will see a big drawdown. And that is when you need to make a decision.
Can you define what you do and when you do it? Most often, traders don’t have strict rules, but rather trade based on ideas and visual stimulations.
I don’t believe in crystal balls. I believe in probabilities.
For trading, the sail setting is the strategy. The water below the boat is the capital and the wind is what the price is doing.
Like all good cars have a steering wheel, a motor, brakes and wheels, all good trading systems also have some things in common.
Maybe you just decided that you don’t do something and afterwards you come up with reasons why you made that decision. But it is still your own decision, not an outside force of the universe, that made you decide that trading is something that we do to make a profit. But what would be a good profit? Probably this is something different for every trader. You might have other preferences than they have.
I still remember my first trade half a dozen years ago. I made $0.16 with it. It took me about 20 minutes, so I immediately started to calculate my expectations. $0.16 in 20 minutes equals $0.58 in each hour, right? Wrong.
If you hope that a particular trade will become a profit, probably that position is too big for your account size.
If you have a good automated trading system, you know your expectancy and your risk.