Don’t Expect Always winning trade.
Are you looking for all trades should WIN? Then you are not a perfect trader. Let’s say for example if you planning to execute 100 trades within a month.
Do you think all the trades will give profit?
Not at all, look for troubles or expect some losses instead of profits, or else you might stumble upon an ideal setup accidentally. Set up the action plan for your trades by following criteria profit percentage trades, loss ratio, Limit orders and Lot Size (Volume).
For Same example will go with probability ratio.
Total Trades: 100
Excepted Winning Trades: 50
Loss Trades: 30
Expired Trades: 20
Lot Size: 0.10 (Volume 10,000 Units)
Take Profit: 50 pip
Stop Loss: 30 Pip
In the total trades you are setting up the take profit 50 pip and Stop loss 30 pip. As you expected your winning trades 50 multiply by 50 PIP Take Profit, you might get $2500USD.
Loss Trades 30 * Stop Loss for each trade 30 PIP, total $900USD, remaining 20 trades were not executed so don’t bother.
Total Profit Trades: $2500
Total Loss Trades: $900
Total Net Profit: $1600 it gives 10% of your deposit ($16000usd) amount.
Above example may vary from trader to trade. The market is the greatest Pandora of imperfections. The process of transforming imperfections to bucks is trading. So, instead of trying to be a perfect trader, simply be a ‘Probability Manager.’ Every aspect of trading is merely an unknown and if you manage to succeed in those singular probability, you are bound to eventuate success.
You might think what happen 50 trades are in loss and 30 trades only gets profit?
50 Trades * 30 Stop Loss = $1500 Profit
30 Trades * 50 Take Profit= $1500 Profit
You came up with No Loss No Profit. Investors prefers not the Winner neither Gambler, They prefer consistent traders (Trade Survivor).