This video is filled with powerful trading strategies that are coupled with a focused philosophy on trading stocks. The speaker reminds the audience throughout the video that it isn’t a video created specifically for day traders. The video starts by giving a quick overview that places intention for the rest of the video. The speaker says, “Successful traders are a different breed of person” and goes on to discuss the type of person who visits Netpicks to include a vast majority of people who are losing money in the market and want a change…
“Look for 65% Winning Percentage”
If you use this winning percentage, then the odds you are playing with are in your favor and as a rule, they will always be in your favor. But if the odds are too high, the risk is also too high. Netpicks advocates the “two thirds/ one third rule”, check (Facebook.com).
” Accept Reasonable Average Win to Average Loss Ratio”
A reward/risk ratio doesn’t always have to be incredible, as per Netpicks. This video discusses the ratio of 1:1 being acceptable and 1.5:1 being the most reward to wait for. Anything with a high reward to risk ratio might be incredibly unstable.
The speaker advises not to “overtrade” and to only trade when the market is in its best conditions for trading, during “prime time” for the market. It is worth looking for a “hard stopping point” in whatever type of stock you are trading, see (Linkedin.com).
” Accept Regular Losing Trades”
Single trades shouldn’t make or break you, but you must “outlast the whims of the market.”
” Can You Trade Your System Correctly 25 Times in a Row?”
The challenge is to get through 25 virtual trades without using your own money or someone else’s money. If you can do that, “you may be able to use real money.” Keep a journal to keep track of your emotions during this journey. Emotions, like “revenge trading,” may arise, reference https://www.crunchbase.com/organization/netpicks#/entity.