Brokerage will Kill you

[#1]

trading 101 folks. Comms, interest, spread and slippage all need to be factored into the risk calculated on a trade. That is why you can't day trade with stocks, warrants or the ALMI. I question whether you can day trade on ZAR currency pairs either. You need the super liquid tight spread stuff like US$/Euro pairs if you want to day trade currencies. Like Sponono says, for stocks, anything less than 10% is not worth it.

[Rams]

i have have come to think that there is no such thing as high probability trades and if such a trade existed, you could still lose because its still based on looking at the chart and determining that the trade is high probabilty and the chart could be wrong....once you place the stop, the reward part is determined automatically if you phasing out and if riding the trend,exit based on price action AFTER placing the trade, and not on chart patterns before the trade was placed

[Prestonmyhusban]

High probability trades involves amongst others, understanding the standard deviation/standard variance associated with that specific share, regression from the mean as well calculating daily returns. Technical analysis forms the second part of the analysis and then money management.

[Rams]

yes , all very nice in theory but too complicated and it does not work becos all of that is based on past data before placing the trade...

[Prestonmyhusban]

complication sets you apart from the herds. Knowledge is power.

[Rams]

yes that may be true, but not in trading, becos " its not whether you are right or wrong, but how much money you make when you are right and how much money you lose when you are wrong"...its all about the EXIT and discipline, not knowledge required

[Preston]

Extract from "Thinking, Fast and Slow" by Daniel Kahneman "Many individual investors lose consistently by trading, an achievement that a dart-throwing chimp could not match"