May 5, 2017

Losing Streaks

Having a trading edge does not mean you won’t have losing streaks. This is another very important point: Even if you have a winning methodology, you can be exposed to a big streak of losing trades. As every moment in the market is unique, just because you had two, three, or five losses in a row, it does not mean your next trade will be a winner. Consider this next example: 

It’s been said the longest recorded streak of one color in roulette in casino history happened in 1943, when red won thirty-two times in a row. The gambler’s fallacy is that after such a streak of red, black is more likely to hit on the next roll—it’s not. 

Even the most successful systems need to have rigid risk-management guidelines in order to avoid the risk of ruin after a bad sequence of trades. Having an edge does not mean the edge will work in small samples; actually, there will be periods when even the best of trading edges will show a few consecutive trading losses. Bear that in mind.

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.

"It took me five years to become a profitable trader and almost another five years to become extremely consistent. If I had come across the right trading material and concepts earlier, I’m sure the learning curve would have been far shorter. This practical book will give you the materials and concepts I wish I’d had early in my career." - Henrique M. Simões

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