"Learn to despise a big loss" (from Day Trade, Nikkei BP)

“Day trading” has many lessons and cautions, and it is a book I like.

There is the concept of risking little and aiming for big profits, but what is described in “Day Trading” is only risking little.

First of all, survival is important, it teaches.

It says that “a small loss is a professional trader’s proof.”

If you look at how you lose, you can tell whether someone is a pro or an amateur, perhaps.

Perhaps those who incur big losses have already exited, but…

Speaking as an EA, everyone hates losing, so there tends to be a desire for high win rate.

But there is a risk that is too great in that.

To have a high win rate, someday a large drawdown will come. I even think this is an inescapable law of this world.

Even if it has a high win rate, I don’t want to create an EA that could blow up at once.

If you run such an EA in real life, you’d have to live each day in fear and trembling.

You hate losing, but it’s unavoidable. Then, at least lose a little. That’s how I feel.

Until next time.

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