WHAT IS TRADING ?
TRADING is a game of chance. No matter the strategy, you only have a 50% chance of winning a trade. No more, no less.
I have blown my account thrice, and I will tell you what I learned from that and how I turned my trading around.
I, like any other retail trader, wanted to make it big faaaast.
I ONLY focused on strategies, completely ignoring risk management and capital allocation (position sizing).
I hopped from one strategy to another for months to find the best strategy that could give me consistent returns until I realized that any strategy ONLY has to give me a slight edge (a lil more than 50%) for me to be profitable. I did not have to be right all the time!
If I kept my losses short and my targets relatively bigger, I could win in this game.
Professional traders are not very different from retail traders. Sure they have better and faster systems, bigger capital to risk big, but their chances of winning a trade are almost the same as us most of the time.
They keep their risk low, cover bigger targets, and allocate capital as per the situation. That’s it! We can do the same exact things if we become more disciplined and learn to manage our emotions & capital better.