subject: Understand The Numbers [print this page] Whenever I talk to traders in relation to negotiation, and I give them "a measure of Baseball" (and boy, do not give much in common)!
The highest levels of baseball, hitting 0,300 on average is very good, .350 is exceptional, and the combined average for all players roughly.250 to.270.
What do you mean these numbers? In essence, if a player gets to bat 10 times, and gets on base (hits the ball) 3 of 10, his average is .300 (or 30%). Simple is not it? Oops!
And how you want to get a job where, at the highest level, you write off nearly 7 out of 10! This means that, as a ballplayer, you'll be OK with failure, and make your "hits" count.
Each time you meet a successful trader, they have the same percentage - which always makes the "hits" count.
If you have a trading strategy, any strategy, we must always strive to do the following: a quick exit losers, winners and stay longer. I would say that tens of thousands of merchants with whom I work, and 90% do the opposite. Look no further than your shoulder from now on ... And I look at you too!
Gone are the number of times you have entered a long trade, down by.50, you sit there and watch all day - hoping not to make money, but until this, "Let me just break even!" Question, how many deals you've lost? "What you focus all your attention, where he goes," That's what my friend Tony Robbins says - He's right!
So many traders fall into the percentage of win / loss of negotiation, rather than money is. Worked with the merchant who swear up and down, won most of the time trading SRS ETF - "Well, that's for sure" was my answer. Lost when doing searches, and more than $ 5,000 in 6 months of trading in securities that! What ... @ $% @ # $%!
Fell into the trap of most traders do not ... This is a positive sense of "winning" in trade, rather than a gain. Less what he does most of the traders:
Trade 1) $ 100 - Wayne
Trade 2) $ 350 - Wayne
Trade 3) ($ 600) - Loss of
Trade 4) $ 200 - Wayne
Trading 5) ($ 300) - Loss of
Trade 6) $ 150 - Wayne
No need to get the calculator - Lost a total of $ 100. "But look how first letter" won "the b ... 4 of 6!" You see, most of the time, and logic to get into private equity is a passionate, and on the above, why stay in the big loser rake in the big loss, it is passion . Real strategy for winning looks otherwise. You should actually be more losses (small), and fewest victories (large).
I do not see a lot of baseball to hit high fiving pop-ups to get caught up in all the time - "but I hit the ball!" - Not at all.
Make your visits, and cut your losses quickly - this is the foundation of a great merchant!
