Net Profit = Profits – Losses Sounds obvious, right? Yet most traders are imbalanced with their approach to taking good trades vs. ignoring bad trades. Truth Bomb #1 Your ability to discard low quality set ups affects your NET PROFIT just as much as your ability to identify and trade high-quality setups – if not
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Avoid This When Backtesting in Forex
One of the many challenges of moving away from mechanical strategies into a more advanced/discretionary approach is adopting a false sense of confidence in your strategies based on flawed back-testing procedures. It’s very easy to say “I would have taken that”… But, really? Would you have really taken it? Over-confidence and naivety can
The Truth About Risk
Every time a reward is available, it will be accompanied with a corresponding risk. The reward of eating breakfast in the morning is accompanied by the risk of getting out of bed and tripping over your shoes on the way to the fridge. Unless you’re prepared to take that risk, you cannot reasonably expect the
The Maths Behind Successful Forex Trading
In Lesson 6 of the Infinite Prosperity Course, you would have downloaded the Infinite Prosperity: Probability Calculator. For the sake of this short post, let’s set aside any technical, fundamental or mechanical trading elements, and talk purely about probability and numbers. You can see here that we’ve dialed in the following numbers: 60% strike rate
Less Trades, More Profit
The balancing act of trading that no one talks about… Assuming all other variables remain constant, the number of trades you take has a direct impact on your strike rate. Someone targeting the same reward/risk 100 times per day will never be able to match the strike rate of someone who waits a month to