Please accept YouTube cookies to play this video. By accepting you will be accessing content from YouTube, a service provided by an external third party.
If you accept this notice, your choice will be saved and the page will refresh.
The second law is the law of regression to the mean. That means that after unusual conditions it is highly likely that we will see usual conditions. As a discretionary trader, I learned that the price seemed to know what I did and it did the opposite of what I had expected. If you’re risk setting is too low, you will not make good profits. If your risk setting is too high, you might crash your whole account.
Big volatility in one currency pair? I can trade up to 22 currency pairs at the same time. So hedging will help me to survive this problem.
I would have never traded what I trade today because I thought that common sense would be helpful.
From what I have learned, it is better to trade more but smaller positions. But I am risk averse and I trade long term systems.
You have reasons to believe in one company and not in the other one. That is because you have personal references and expertise. But most traders think that there are trading experts out there who can predict the future.
A big crisis was the Brexit. On the day of the first Brexit votum. There was such a high volatility that with the wrong settings in the trading system you could panic in no time. You need to sleep, you need to work and you want to spend some time with family and friends. With backtesting you can do a few thousand trades in a very short time and that will give you results that you can believe in. If you flip a coin only five times, you might get three times heads and two times tails. But that doesn’t mean that one side of the coin works better than the other one. Humans always think about problems. Have we perhaps made a complete mistake?
Are we wrong in assuming that our system is capable of producing positive results at all?
To improve something, you just need to do it several thousand times. That is also what sportsmen do to take part in the Olympics.
Good profits are what we want. But there is another thing that is even more important. It is how we feel. I prefer the equity based stop because of the results it produces for my systems. For good trading results, you need to have enough trading capital.
But how much is enough? Do you think that you could predict the trading future? I am not a financial expert and I know it wouldn’t even help me. What do you think? 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. I would suggest to start with forex trading. You can always decide to try something else later.
In 2022 a guy from Kenya managed to run a marathon in 2 hours. That is unbelievably fast. But now that one person was able to do it, other people will also be able to do it.