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Why wont this work?

Reply
Not applicable
If 90% of new traders lose money. Why not get a group together and ask them to try to LOSE their trading account asap. Shouldnt they then make money?
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30 REPLIES 30
SimonPB
Valued Contributor
they would lose anyway because of why they lose .. psychology ..
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WR
Regular Contributor
very few people actually make money over the long term and earn a sucessful living.
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john_1
Super Contributor
they lose becuae the trade always starts negative.. so one "knows" you have to give it time to turn possitive.. If all trades "started" positive" few would lose money..OMO
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Not applicable
well if trading were physocological yes, reverse physcology might inspire. Trading however is emotional (and it should not be but it is to many) so figure reverse emotional motivation out and that system will work '-)
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WR
Regular Contributor
trading is a zero sum game. Some one has to make money and some one loose money.
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john_1
Super Contributor
no only futures trading is zero sum..all other have infinite win/win potential
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john_1
Super Contributor
and you can reverse the position.. I have always thought I am a ***** scalper.. but what I would do is try for 50-100 points and then get stopped for a loss for 20/30 points.. now I exit on a gain of 20/30 points and I make a couple of grand
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Not applicable
John, thats waht I argued many a time last year. Small profits often rather than big profits occasionally. Trading is short term so make many small profits and you will be happy.

My system is 3% per trade 3 times per month. 9% per month = 108% pa= double money. If I make more great. Todays early trade (started yesterday) netted 12%. so I am ahead of my monthly target.
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AJT
Super Contributor
problem with this approach is that you limit the upside, would it not be better to have a trailing stop/loss strategy...
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SimonPB
Valued Contributor
on a 3% profit per trade, how do you manage the losers ?? depending what you trade you're 3% down as soon as you buy, spread, brokerage and slippage ..
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Jacques_1
Frequent Contributor
CPS - on what rand value trade ? 3% could be ones costs on a smaller amount.
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Not applicable
Simon, that system - warrants flat brokerage (tnx). Gotta pick the small spread ones to do it and have a good idea of what price movment to expect. SOL for instance in the last two days has had some nice trades intraday. Will chat more about this next week if I remember
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Not applicable
Right, back to the topic. I think if you get a large group of novices together (under 3 years experience) and just take the OPPOSITE of thier consensus trades AND put in a money/risk management system - YOU WILL MAKE MONEY!
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AJT
Super Contributor
Statistically makes sense, proivided Murphy does not raise his ugly head...
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Not applicable
John, What set-ups do you use to scalp the 20-30 ticks? And what is you exit strategy?
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SimonPB
Valued Contributor
but it is not about the accuracy of their calls .. it is their complete lack of discipline ..
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Not applicable
The reason it won't work is because the bulk of a traders losses are actually a result of sideways trending markets. We think we called it, it doesn't go our way, we exit but then it goes our way. The biggest problem a trader has is to figure out when to take profit, and this problem will still exist for anyone who theoretically does the exact opposite of the unsuccessful trader
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Not applicable
Simon, thats why I say you take your trades based on the opposite of thier trades. BUT U DO THE MONEY AND RISK MANAGEMENT YOURSELF ONCE THE TRADES ARE ACTIVE.
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Not applicable
Figuring out when to take profit is a pretty good problem to have.
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