Thursday, November 16, 2006

Sick of it!

You know friends, I am sick of people trying to insist that you need a specific risk to reward ratio to succeed in trading. If you are not familiar with Reward to risk ratio, then email me and I wil l explain. You need to look at the big picture: the big picture being you can have reward to risk ratio of 0.5 and still make money! How? Profit is a function of RR Ratio and accuracy. so If you have accuracy of 75% and reward to risk ratio is 0.5 YOU Will still make money. In simple terms, you are making 50 cents 3 out of 4 trades and losing $1 in 1 out of 4 trades. I hope that makes sense.

Sunday, October 15, 2006

It takes One!

I have been doing some thinking on why am I not able to create results I want in trading...and one thing I have realized is that I am not committing and measuring my commitment. It takes a lot of reasons not to do whats necessary to succeed in this profession. e.g. gotta do my laundry, have to go out with my wife, have to watch "Lost" every Thursday night or Wednesday or whatever you watch. I don't care because I have Tivo now. :) Anyways, the point is it takes anything and everything not to do whats a must to succeed but only ONE REASON to do it: the reason is "This is the most important priority in my life, I wont do my errands and then try to fit sometime in for my trading but the other way around. I will do my trading and try to find some time for my other errands. So that's why I am committing to measure how much time I spend everyday on trading, I commit to spend at least 25 hours every week on it and measure it on a spreadsheet.

Over and out.....