are typically things that people associate with being profitable and successful. The reason this is a mistake, is because the next trades outcome is completely independent of the previous trades, that is if you are sticking to your trading plan and trading off logic and not emotion. Through position sizing, you can adjust the number of lots you are trading (your position size) up or down so that you maintain roughly the same dollar risk per trade no matter what the stop loss distance. For those of you who missed it, weve been discussing this setup in our recent audusd commentaries and the market has now provided at least a 2 to 1 winner from that setup. For now, I need you to consider the fact that it can actually be harmful to your trading psychology and thus to your overall trading performance to focus too much on win percentages and whether or not you were right about your last trade(s). However, its important to discuss a little bit about HOW this is all possible.
Position sizing, position sizing is how you actually keep your dollar risk constant per trade. Here's what we found in their previous sales. Now that youve seen how you can actually lose money by winning most of your trades, lets look at how you can make money by losing most of your trades, to further hammer-home the point that winning percentages are irrelevant. Id like you to take a look at the spreadsheet below. About Nial Fuller Nial Fuller is a Professional Trader Author who is considered The Authority on Price Action Trading. Checkout my trading course and members community for more information on how to profit in the markets by combining a mastery of price action trading with proper money management. In the example below, we see a recent 4 hour eurusd pin bar buy signal that resulted in another 1R loss.
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