Session 7: The Secret to a 99% Win Rate — Probably Because You’re Very Fearful of the Market
Episode 7: Mark Weinstein
Traders who have bought FX products or tools may understand this,
on the sales page you often see
"If you buy this product, good things will happen. Travel, food, vehicles, relationships...
The money to buy these things or improve them will come from earning"
words and photos line up.
However, I wonder whether any trader who took these words to heart and bought the product
became a billionaire.
Why?
Today’s introducingMark Weinsteinalso says,
“The biggest mistake is to work backward from the target amount you want to earn, which leads to massive loss of funds.”
“When a trader starts to think in terms of actual profits and losses, they invariably make errors.”
That’s why.
If you think calmly, you’ll realize that
the amount you want to earn is not the same as the amount you can gain from trading, right?
If you want a luxury car and the price is 30 million yen,
but the amount you can realistically gain from FX trading is at most about 100,000 yen per month.
In that case, earning 100,000 yen a month is really great, but
compared to the 30 million yen target, it isn’t enough and you feel dissatisfied.
Then you take larger positions or engage in high-risk trades andyou end up losing funds.
But on the other hand, this is a dilemma.
What you invest in is to make money, and it has a purpose.
The purpose differs from trader to trader,
it could be travel, food, vehicles, or relationships.
That’s what it can be.
So how should we face investing and trading?
Let’s think from Mark Weinstein’s words.
After a big trading failure, he achieved a 99% win rate in trading,
and he explains that the secret to his high win rate is this:
“Probably because I fear the market a lot.”
“That fear of the market has made my timing in trading more accurate.”
Also, his trading style uses
Elliott waves, Gann analysis, Fibonacci, moving averages, and various oscillators
based on his own experience and intuition, so it isn’t something you can rely on blindly,
but there is much to learn from his trading rules.
1. Always do your homework.
2. Do not become arrogant. Always stay humble.
3. Know your own limits. Everyone has limits.
4. Maintain originality. If you do the same as the crowd, you will eventually lose.
5. Do not trade until the timing is right. Know when not to trade.
6. Trading strategies need the flexibility to adapt when the market changes. Sticking to the same strategy is a mistake.
7. Even if you make money once, don’t be satisfied. The hard part is to keep earning.
I don’t understand number 1’s homework,
but all the other rules are easy to say and hard to consistently follow.
Yet without doing these, it may be hard to keep winning in trading.
Author:Yuusuke KurodaProfile: FX information product trader. While working, he became free from money worries through FX and binary options.
Blog:FX information product trader - verification review site
