THT’s Market Education – Lesson 6

Lesson 5 we looked at Risk:Reward ratio and viewed an example of a 1:2 R:R, this fits into the video on Probabilities and how it all fits together – you know that with a 50% Win:Loss ratio and a 1:2 Risk:Reward ratio you will win in the markets (you still need a valid set-up but so far we’ve not even looked at set-ups, that all happens in a later video, as of now set-ups aren’t too important)

Dealing with LOSSES

How do you handle losses when it goes wrong?

Here’s Video 6:

Hint:  Its a pure mental game, some of you will be able to tolerate more losses than others.  If your chosen trading set-up provides a win:loss ratio of 30% then you have to be able to handle the losing trades, if you can’t you need to find a suitable trading method that provides you with a higher win:loss ratio which is no easy feat, especially if your dominant personality suits that of a set-up which obtains less than 50% success rate!

It takes time to find yourself to, most people do this by trading off the bat and trying to find the solution as they progress.

Happy learning

The Hovis Trader

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