I was supposed to process the video from our live class last week on Thursday or Friday but as always, life in Rio de Janeiro gets in the way. I wanted to share today’s live class specifically because it was a very uneventful.
By uneventful I mean, there were not hundreds of opportunities that netted 1 billion points for us.
I actually prefer to teach on these kinds of days because it forces everyone to focus on discipline rather than making money. While making money is important, if you don’t have discipline what are you going to do when the market is not moving well?
Even though it’s a lot more fun when we are all making money together, the principles needed in order to be successful in the markets is discipline and risk management. Anyone can learn how to take a good trade, but not everyone can learn how to be disciplined and minimize as little risk as possible.
The Congressive approach to trading is that simple concept of being able to adapt to the market, stay conservative in the markets not moving well and be aggressive when the market is moving well.
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That is one of the reasons why most people in this industry don’t make money. There have been studies at universities that put the winning percentage of traders that about 10%, and other words, only 10% of people who day trade actually make money.
I would put this closer to 3% considering that the extra 7% are people who do not find a consistent level of income; they win some days, they lose some days, and in the end they may be at a breakeven or just above zero.
What are all these traitors going to do when we have weeks of channeling markets with low volume? Our indicators going to tell you want to get in then?