PICSIX
12-29-2013, 09:05 AM
Human nature does not operate to maximize gain but rather to maximize the chance of a gain. The desire to maximize the number of winning trades (or minimize the number of losing trades) works against the trader.
The success rate of trades is the least important performance statistic and may even be inversely related to performance. Two of the cardinal sins of trading – giving losses too much rope and taking profits prematurely – are both attempts to make current positions more likely to succeed, to the severe detriment of long-term performance.
Don’t think about what the market’s going to do; you have absolutely no control over that. Think about what you’re going to do if it gets there. — William Eckhardt
The success rate of trades is the least important performance statistic and may even be inversely related to performance. Two of the cardinal sins of trading – giving losses too much rope and taking profits prematurely – are both attempts to make current positions more likely to succeed, to the severe detriment of long-term performance.
Don’t think about what the market’s going to do; you have absolutely no control over that. Think about what you’re going to do if it gets there. — William Eckhardt