Jan 20, 2017

What is the Best Path to Trading Profitability?

I was a bit perplexed when I saw the final results of this trading poll. When asked what was the most thing for profitable trading, most answered "big wins/ small losses". That is a bit mind-boggling to me as what is obviously most important is to have a trading edge, a winning system as stated in the third option (only 23% of the total votes).

This implies that most traders surveyed believe in trend following in some form. Let me share two thoughts on trend following,

"The effectiveness of trend-following has been decreasing in recent years since there is no barrier to entry and everyone can identify trends using the same tools and indicators. For example, my analysis indicates that the top systematic trend-following Commodity Trading Advisors have realized annualized returns below 2.5% in the last 10 years on the average." - in Forbes

"Here there is an argument worth mentioning: some traders think that because trends always form in the markets, trend-following will always be a profitable style. However, the net profit from trend – following has two main components: profit from trends minus loss from choppy market activity. Usually, choppy markets cause trend-following methods to lose money. Therefore, it is not enough to have trends, it is also necessary that losses from choppy markets are not substantial." - in Forbes

My point here is: in trading anything that works, works. I am a consistently profitable trader and I trade a high winning percentage system. That option, my very own definition of trading success had only 5% responses in the survey. 

Are traders in general too formatted to a specific type of trading? Yes!

You will follow practical steps and acquire the essential skills a successful trader must have in order to consistently win, and you'll also learn:

- how to develop a trading system
- how to utilize the best trading techniques within a trading methodology
- how to think about the psychological aspects of trading and the markets
- how vital it is to treat trading like a business

As you master this breakthrough program, you'll build yourself a distinctive trading signature, hitting win after win, and you'll be well on your way to financial independence!

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