I seen most of us tell and teach don’t be greedy on profit’s and don’t let the fear to control your trade, that’s right, but i want to know what that ratio behind this two emotions, and what is the best ratio of successful trader and in his trade?
Unfortunately it is hard to quantify human emotions and hence difficult to measure it. Maybe someone can enlighten us in case they have achieved this feat.
That’s in your head. It varies from individual to another. Like Warren Buffett has a ratio of 10:10 (all successful trades) and any other illogical person’s is 0:10 or hardy 1:10, so hardly it matter, you see!
A difficult question to answer, see it all depends on how you look at it. Don’t look for ratio’s in trading, only see how much profit can you make in points or rupees, and also see how you can control or cease to make losses.
Nice one, that!
By 10:10 it means when you divide 10 trades by 10 chances the ratio comes out at 1. So, according to the principles of Statistical Probability, 1 means 100% whereas any number less than 1 means not 100%. Hence, that means all the trades placed are successful. Btw, Warren Buffett doesn’t use a computer to trade, he probably doesn’t even understand computers.