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The data that you see on your chart is calculated by a computer. It is rendered by a computer. But most people try to use their eyes and a tiny fraction of the data to make, buy or sell decisions. Nobody knows why somebody on the other side of the world is going to buy or sell. It is hard to see losses.
And it is also hard to watch your trading account making a small profit when you have made much bigger profits for another trading year. There are some signs that will show you when it is time to increase or decrease the risk.
Why do you think that there are so many indicators?
There are also years when you need to be much more careful. You never know, until you measure it. When I started out with algorithmic trading, my biggest problem was to create a system that could produce profits on a consistent basis. For discretionary traders, this is almost impossible. But when you look on the screen now, you will see that an algorithmic trading system has no problem to trade a few hundred positions.
Losses feel bad and that can cause fearful behavior. You might want to hurt your trading plan just to feel better. You don’t need to manually adjust anything because you have adjusted it before you activated your system. Most people will lose all their money within six months or less. The reason is simple, they do exactly what does not work.
Have you ever been sure that you need to buy and right away the market went into the false direction?
A margin call is when the broker will tell you to either deposit more money or positions will be closed in a loss. And nobody wants to have a margin call. How would you make a profit? You can trade a trend or you can trade a breakout.