Walter Joseph Dillard / 个人资料
- 信息
3 年
经验
|
0
产品
|
0
演示版
|
0
工作
|
1
信号
|
0
订阅者
|
Proprietary Trader
在
My Forex Funds
I'm a proprietary trader and forex signals provider.
I got into forex trading at age 18 in 2017. I wasn't the best to begin with, but after discovering algorithms and learning how to build and tune them I got to be extremely good at trading.
Now I am a prop trader and I post my portfolio results here for you all to see under my signals and follow if you wish to do so.
I also provide signals for non-prop traders, which makes up a majority of my work.
Feel free to talk to me at any point in time. I love to connect with and help out others. I'm really nice, and always interested in collaborations and new challenges.
Thanks for reading, hope you have a great day!!!
I got into forex trading at age 18 in 2017. I wasn't the best to begin with, but after discovering algorithms and learning how to build and tune them I got to be extremely good at trading.
Now I am a prop trader and I post my portfolio results here for you all to see under my signals and follow if you wish to do so.
I also provide signals for non-prop traders, which makes up a majority of my work.
Feel free to talk to me at any point in time. I love to connect with and help out others. I'm really nice, and always interested in collaborations and new challenges.
Thanks for reading, hope you have a great day!!!
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
3 quick trading tips part 2!
-1: Have a clear trading plan.
-2: Reinvest and compound your profits.
-3: Be the best at what you do.
-1: If you get on a plane you have a clear destination. Would you get on a plane and say, “Fly me anywhere?” I doubt it. Yet most people don’t have a clear trading plan and are doing just that.
I personally recommend 3 trading plans. 1 for security, 1 for comfort, and 1 for getting rich.
It’s important to have all 3 trading plans and not just the last 1.
-2: Compound interest is extremely powerful. If you reinvest your profits then you can really grow your capital. Many people instead withdraw their profits. While there is a time to do that, it’s important to grow your capital. If you truly have an edge in the market then it’s foolish to not compound your profits.
-3: To make the big bucks you really need to be the best at what you do. 90% of traders are losers or boom and busters. 10% are consistent winners, but only 1% are the big winners.
If you want to really succeed you need to be in the top 1% of all traders, which isn’t too hard to do, but is a necessity.
Thanks for reading!
Have a great day!
Cheers!
:)))))))))))
-1: Have a clear trading plan.
-2: Reinvest and compound your profits.
-3: Be the best at what you do.
-1: If you get on a plane you have a clear destination. Would you get on a plane and say, “Fly me anywhere?” I doubt it. Yet most people don’t have a clear trading plan and are doing just that.
I personally recommend 3 trading plans. 1 for security, 1 for comfort, and 1 for getting rich.
It’s important to have all 3 trading plans and not just the last 1.
-2: Compound interest is extremely powerful. If you reinvest your profits then you can really grow your capital. Many people instead withdraw their profits. While there is a time to do that, it’s important to grow your capital. If you truly have an edge in the market then it’s foolish to not compound your profits.
-3: To make the big bucks you really need to be the best at what you do. 90% of traders are losers or boom and busters. 10% are consistent winners, but only 1% are the big winners.
If you want to really succeed you need to be in the top 1% of all traders, which isn’t too hard to do, but is a necessity.
Thanks for reading!
Have a great day!
Cheers!
:)))))))))))
![](https://c.mql5.com/1/255/1677333501283.jpeg)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Many people believe their intuition and insights will allow them to outsmart and outperform the market.
However, intuition statistically isn’t as good as a purely mechanical strategy.
80% of professional fund managers picking specific stocks are outperformed by the S&P 500. That’s simply a fact.
That’s not to say you can’t pick good stocks, but just means that most people think they can pick really high performing stocks yet in reality would be better off just buying the S&P 500 purely mechanically.
Many think that intuition holds some magic, some super powered insight that allows them to see the truth. In reality, intuition just statistically isn’t worth putting too much stock in.
Don’t get me wrong, it’s important to listen to what your intuition has to say and to look into it. Sometimes you’ll get a great idea and it’s most definitely looking into. However, too many people go straight from having a thought to acting on it without looking into it and verifying it first.
At the end of the day, intuition can be very valuable, but it has its limitations and overall isn’t as good as purely mechanical strategies tend to be based on the statistics.
If you don’t believe me, please read the book, “What Works on Wall Street.” It goes into far more detail on this exact matter.
Thanks for reading!
Have a great day!
Cheers!
:)))))))))))))))))))))))))))))))))))))))
However, intuition statistically isn’t as good as a purely mechanical strategy.
80% of professional fund managers picking specific stocks are outperformed by the S&P 500. That’s simply a fact.
That’s not to say you can’t pick good stocks, but just means that most people think they can pick really high performing stocks yet in reality would be better off just buying the S&P 500 purely mechanically.
Many think that intuition holds some magic, some super powered insight that allows them to see the truth. In reality, intuition just statistically isn’t worth putting too much stock in.
Don’t get me wrong, it’s important to listen to what your intuition has to say and to look into it. Sometimes you’ll get a great idea and it’s most definitely looking into. However, too many people go straight from having a thought to acting on it without looking into it and verifying it first.
At the end of the day, intuition can be very valuable, but it has its limitations and overall isn’t as good as purely mechanical strategies tend to be based on the statistics.
If you don’t believe me, please read the book, “What Works on Wall Street.” It goes into far more detail on this exact matter.
Thanks for reading!
Have a great day!
Cheers!
:)))))))))))))))))))))))))))))))))))))))
![](https://c.mql5.com/1/254/Screenshot_2023-02-24_075803.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
The goal of trading is always profit. If it’s not then something is very wrong.
Still, while the goal is profit, surviving is a necessity first.
Trading is a minus sum game. This means it is even harsher than a zero sum game. In a zero sum game for every winner there is a loser. Take a poker game for example. Every time you win money another person loses that money. Simple, right?
However, in trading it’s a minus sum game. What you get when you win is less than what the loser loses. This is thanks to brokers on both sides taking a cut regardless of if you win or lose.
If you win some and lose some in a zero sum game then things balance out. However, if you win half the time and lose half the time then you bleed out in a minus sum game. This makes trading very hard to succeed in, and forces you to have a real edge that wins enough of the time to cover both losses and all the commissions and spreads charged by your brokers.
This means that first you need to survive before you can succeed. After all, 90% of retail traders lose 90% of their money within 90 days. The first obstacle is always to overcome the 90 90 90 rule. Not falling into this trap puts you in the top 10% of retail traders.
Once you can survive, then success is just a few steps further. However, many people go right for success and end up failing instead.
This is where risk management and risk diversification help. If you start with low risk accounts that aren’t going to make you rich but are consistent and risk very small amounts per trade, then you can survive in the markets and learn a lot based on very small financial losses.
Once you can get low and medium risk investments in place then feel free to go for some of those higher risk trading accounts. After all, once you have some security in place then going for what you want is easy. After all, you can always fall back on the lower risk accounts if you fail on the higher risk opportunities.
At the end of the day surviving needs to come first before massive profitability.
Thanks for reading!
Cheers!
:)))))))))))))))))))))))
Still, while the goal is profit, surviving is a necessity first.
Trading is a minus sum game. This means it is even harsher than a zero sum game. In a zero sum game for every winner there is a loser. Take a poker game for example. Every time you win money another person loses that money. Simple, right?
However, in trading it’s a minus sum game. What you get when you win is less than what the loser loses. This is thanks to brokers on both sides taking a cut regardless of if you win or lose.
If you win some and lose some in a zero sum game then things balance out. However, if you win half the time and lose half the time then you bleed out in a minus sum game. This makes trading very hard to succeed in, and forces you to have a real edge that wins enough of the time to cover both losses and all the commissions and spreads charged by your brokers.
This means that first you need to survive before you can succeed. After all, 90% of retail traders lose 90% of their money within 90 days. The first obstacle is always to overcome the 90 90 90 rule. Not falling into this trap puts you in the top 10% of retail traders.
Once you can survive, then success is just a few steps further. However, many people go right for success and end up failing instead.
This is where risk management and risk diversification help. If you start with low risk accounts that aren’t going to make you rich but are consistent and risk very small amounts per trade, then you can survive in the markets and learn a lot based on very small financial losses.
Once you can get low and medium risk investments in place then feel free to go for some of those higher risk trading accounts. After all, once you have some security in place then going for what you want is easy. After all, you can always fall back on the lower risk accounts if you fail on the higher risk opportunities.
At the end of the day surviving needs to come first before massive profitability.
Thanks for reading!
Cheers!
:)))))))))))))))))))))))
![](https://c.mql5.com/1/254/surviving_in_the_markets.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
For the average trader, trading is an emotional rollercoaster.
They start off feeling limitless and looking forward to massive amounts of money from the market. Often they picture the house they’ll buy, the car they’ll have, how great their life will be.
Up front there are a lot of emotional highs when it comes to thinking about trading.
When they start trading or seeing results on a system then those high emotions that rushed them into trading disappear and they plummet into fear and worry.
As soon as trades start going against them they have nothing to back up their former confidence. At first they felt like there was only fortune and no risk. Now, they feel only fear and worry, only seeing the risk and not the reward.
Many average traders continue this cycle until they quit trading. Regardless of the system they use and how good it is, they can never detach from this emotional rollercoaster.
At the end of the day trading is simple and simple to intellectually understand, but the emotions are what hold average traders back from being exceptional.
If you’re interested in improving your emotional trading feel free to private message me and I’m happy to help you out with top notch exercises that help fix this issue.
Thanks for reading!
Have a wonderful day!
:)))))))))))))))))))))))))))))))))))))))
They start off feeling limitless and looking forward to massive amounts of money from the market. Often they picture the house they’ll buy, the car they’ll have, how great their life will be.
Up front there are a lot of emotional highs when it comes to thinking about trading.
When they start trading or seeing results on a system then those high emotions that rushed them into trading disappear and they plummet into fear and worry.
As soon as trades start going against them they have nothing to back up their former confidence. At first they felt like there was only fortune and no risk. Now, they feel only fear and worry, only seeing the risk and not the reward.
Many average traders continue this cycle until they quit trading. Regardless of the system they use and how good it is, they can never detach from this emotional rollercoaster.
At the end of the day trading is simple and simple to intellectually understand, but the emotions are what hold average traders back from being exceptional.
If you’re interested in improving your emotional trading feel free to private message me and I’m happy to help you out with top notch exercises that help fix this issue.
Thanks for reading!
Have a wonderful day!
:)))))))))))))))))))))))))))))))))))))))
![](https://c.mql5.com/1/254/Screenshot_2023-02-21_083850.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Most retail traders want the holy grail of trading. They want huge profits without any losses.
They want to risk nothing yet be rewarded with everything.
So, they search for the holy grail of trading. At first they wing it, but later they just look and look for it from technical indicators to price action to algorithms. Yet, they never find the holy grail.
The reason is because there is no holy grail of trading.
It only takes one person in the world to make you lose a trade. One politician giving an unexpected announcement, one hacker taking down a whole company, one hedge fund manager deciding to short squeeze millions of retail traders out of their positions…
It only takes one person to make you lose a trade. Thus there is no way to trade with zero risk and make a fortune overnight. The holy grail of trading simply isn’t real.
Instead you can become a highly profitable trader, but all trading involves both risk and reward. You cannot have one without the other. Having a great strategy is doable, but perfection and the holy grail of trading are simply myths.
Thanks for reading!
Have a great day!
Cheers!
:)))))))))))))))))))))))
They want to risk nothing yet be rewarded with everything.
So, they search for the holy grail of trading. At first they wing it, but later they just look and look for it from technical indicators to price action to algorithms. Yet, they never find the holy grail.
The reason is because there is no holy grail of trading.
It only takes one person in the world to make you lose a trade. One politician giving an unexpected announcement, one hacker taking down a whole company, one hedge fund manager deciding to short squeeze millions of retail traders out of their positions…
It only takes one person to make you lose a trade. Thus there is no way to trade with zero risk and make a fortune overnight. The holy grail of trading simply isn’t real.
Instead you can become a highly profitable trader, but all trading involves both risk and reward. You cannot have one without the other. Having a great strategy is doable, but perfection and the holy grail of trading are simply myths.
Thanks for reading!
Have a great day!
Cheers!
:)))))))))))))))))))))))
![](https://c.mql5.com/1/254/Screenshot_2023-02-20_104515.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
A lot of people think that because they are smart they can outsmart the market.
They think they can pick the right direction in the market, not use a stop loss, not test their methods, and that because they are smart they will make a lot of money.
I see this all the time from forex to penny stocks. Many people are so sure they can use their intelligence to outsmart the market and that they don’t need a method and rules to tie down their trading and investing.
Whenever someone pitches to me that their method is to outsmart the market, I always think of Isaac Newton.
Isaac Newton was a brilliant scientist. He was a pioneer of calculus, discovered the connection between gravity on earth and the motion of the planets in space, founded 3 key laws of motion, as well as some of his lesser known discoveries such as Newton’s law of cooling.
When it comes to top influential scientists, Newton is certainly high up there. Yet, Isaac Newton lost nearly all of his family’s fortune by investing in the south side sea bubble near its peak. When it came crashing down he lost nearly everything.
He thus said, “I can calculate the motions of heavenly bodies but not the madness of men.”
Newton was a very smart man, but because he was smart that didn’t make him a great trader.
Often an extremely simple and mechanical plan in any market beats those trying to outsmart the market. That’s not to say one can’t have great methods, you definitely can make a ton of money in the markets and I do encourage you to do so.
Still, for those who aren’t willing to spend the time to learn about trading and just are acting on hot tips or trying to outsmart the market without testing their method, nearly all will end up losing a fortune just as Newton did.
Thanks for reading, have a great day!
Cheers!
:)))))))))))))))))))))))))))))))))
They think they can pick the right direction in the market, not use a stop loss, not test their methods, and that because they are smart they will make a lot of money.
I see this all the time from forex to penny stocks. Many people are so sure they can use their intelligence to outsmart the market and that they don’t need a method and rules to tie down their trading and investing.
Whenever someone pitches to me that their method is to outsmart the market, I always think of Isaac Newton.
Isaac Newton was a brilliant scientist. He was a pioneer of calculus, discovered the connection between gravity on earth and the motion of the planets in space, founded 3 key laws of motion, as well as some of his lesser known discoveries such as Newton’s law of cooling.
When it comes to top influential scientists, Newton is certainly high up there. Yet, Isaac Newton lost nearly all of his family’s fortune by investing in the south side sea bubble near its peak. When it came crashing down he lost nearly everything.
He thus said, “I can calculate the motions of heavenly bodies but not the madness of men.”
Newton was a very smart man, but because he was smart that didn’t make him a great trader.
Often an extremely simple and mechanical plan in any market beats those trying to outsmart the market. That’s not to say one can’t have great methods, you definitely can make a ton of money in the markets and I do encourage you to do so.
Still, for those who aren’t willing to spend the time to learn about trading and just are acting on hot tips or trying to outsmart the market without testing their method, nearly all will end up losing a fortune just as Newton did.
Thanks for reading, have a great day!
Cheers!
:)))))))))))))))))))))))))))))))))
![](https://c.mql5.com/1/254/Screenshot_2023-02-17_092704.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Many people go into trading because they see it as glamorous and exciting.
They think traders make millions on a single trade, and live a prosperous life based on complicated strategies, creative ideas, bold steps, and then massive profits all at one time.
Many people think trading is like being in an action movie, all excitement all the time.
To many people that is exactly what they want, an exciting way to make a lot of money.
The truth of good trading is that it is not exciting. If you do it right, it’s not supposed to be exciting.
If you are emotionally involved in trading then you not only benefit from emotional highs, but suffer emotional lows when things don’t go your way. Truly great traders do not get emotionally hung up on their trades, but merely use them to turn a consistent profit.
Many people stray far away from great strategies because they are looking to make money on something that is exciting. For example, some of the strategies that I use to manage massive amounts of investor and hedge fund capital are the strategies that retail traders with $100 are unwilling to invest in because the strategies aren’t exciting enough for them.
So they proceed to go and lose that $100 instead of investing in strategies that professionals put over 1000X that into.
If you want to be excited, the markets are far too expensive a place for you to get your fix. The markets are a place for making money, not getting emotional thrills.
Make money in the markets and use that money to help fuel the fun you have in your exciting life.
Cheers!
:)))))))))))))))))))))))
They think traders make millions on a single trade, and live a prosperous life based on complicated strategies, creative ideas, bold steps, and then massive profits all at one time.
Many people think trading is like being in an action movie, all excitement all the time.
To many people that is exactly what they want, an exciting way to make a lot of money.
The truth of good trading is that it is not exciting. If you do it right, it’s not supposed to be exciting.
If you are emotionally involved in trading then you not only benefit from emotional highs, but suffer emotional lows when things don’t go your way. Truly great traders do not get emotionally hung up on their trades, but merely use them to turn a consistent profit.
Many people stray far away from great strategies because they are looking to make money on something that is exciting. For example, some of the strategies that I use to manage massive amounts of investor and hedge fund capital are the strategies that retail traders with $100 are unwilling to invest in because the strategies aren’t exciting enough for them.
So they proceed to go and lose that $100 instead of investing in strategies that professionals put over 1000X that into.
If you want to be excited, the markets are far too expensive a place for you to get your fix. The markets are a place for making money, not getting emotional thrills.
Make money in the markets and use that money to help fuel the fun you have in your exciting life.
Cheers!
:)))))))))))))))))))))))
![](https://c.mql5.com/1/254/Screenshot_2023-02-16_073601.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
In our lives today, many people think they are free, but really are not.
While there are no longer physical chains and shackles there are still financial chains and shackles.
Most people have liabilities, bills, and debts that force them to keep working and keep working harder and harder. Financial chains weigh on people just as much as physical chains do.
Finances are more important than ever, particularly these days.
Automation has begun to remove jobs from the market and that will only continue as time goes on. Cars used to be made by an assembly line of people and now are made by an assembly line of machines.
Truck driving in many places has begun to be automated away with self driving trucks taking over. Fast food restaurants have started having more and more machines take over, and some are now entirely automated.
Farming equipment has moved in the direction of being self-run as well with factory farms heading towards the use of fully automated equipment with no need for people to operate it.
Even in the trading world many traditional hedge funds have begun to be transitioned into quant funds with trading algorithms replacing people.
None of these automation situations are bad, they are simply a change in the world as machines can operate far faster and far longer than human labor for far less money.
For now many people can always just get retrained and get another job in another sector, but that’s not going to be the case forever. To me this means it’s the most important time to become financially free and not have to rely on a job for income.
Trading and investing aren’t the only vehicles to reach financial freedom, but to me they are some of the best if you’re willing to do the work.
Let’s be honest, most traders won’t be willing to do the work and won’t make it. Most of them will fail and quit within 5 years or less. Still, to those who see the value of financial freedom and are ready to learn, trading can be a fantastic way forward.
Thanks for reading!
Have a great day!
Cheers!
:))))))))))))))))))))))))
While there are no longer physical chains and shackles there are still financial chains and shackles.
Most people have liabilities, bills, and debts that force them to keep working and keep working harder and harder. Financial chains weigh on people just as much as physical chains do.
Finances are more important than ever, particularly these days.
Automation has begun to remove jobs from the market and that will only continue as time goes on. Cars used to be made by an assembly line of people and now are made by an assembly line of machines.
Truck driving in many places has begun to be automated away with self driving trucks taking over. Fast food restaurants have started having more and more machines take over, and some are now entirely automated.
Farming equipment has moved in the direction of being self-run as well with factory farms heading towards the use of fully automated equipment with no need for people to operate it.
Even in the trading world many traditional hedge funds have begun to be transitioned into quant funds with trading algorithms replacing people.
None of these automation situations are bad, they are simply a change in the world as machines can operate far faster and far longer than human labor for far less money.
For now many people can always just get retrained and get another job in another sector, but that’s not going to be the case forever. To me this means it’s the most important time to become financially free and not have to rely on a job for income.
Trading and investing aren’t the only vehicles to reach financial freedom, but to me they are some of the best if you’re willing to do the work.
Let’s be honest, most traders won’t be willing to do the work and won’t make it. Most of them will fail and quit within 5 years or less. Still, to those who see the value of financial freedom and are ready to learn, trading can be a fantastic way forward.
Thanks for reading!
Have a great day!
Cheers!
:))))))))))))))))))))))))
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
It’s funny how few see market crashes and drops as ultra awesome chances to buy great things on sale. From the housing market to the stock market, when things crash you have the opportunity to buy all the things you want at a massive discount.
However, many people buy high and sell low in the market because of their fear and greed and need to follow the crowd.
If you do what the crowd does then you’ll get the same results that the crowd gets.
Often it takes novice traders a lot of courage and energy to get into a market. Unless they are sure it is trending strongly up, they won’t get in. As soon as it hits all time highs they leap in and are ready for the market to keep shooting up indefinitely. Somehow that just never happens…
Meanwhile when the market is low they keep panicking and selling off what they have at loss after loss instead of simply waiting out the crash and for things to recover. This is often because they trade with money that they can’t afford to lose, so have no real ability to stay in the market through any negative fluctuations.
Personally I recommend buying into the market whenever it goes low and putting your money into great things like the S&P 500 index. Whenever the market dips it never hurts to pick up some S&P 500 and sell it when the market hits all time highs once again.
After all, buying low and selling high is not rocket science. The issue is that many people want to time the market and get in at just the lowest possible price and then leverage up big time so that a small event can make them a fortune.
For example, with the S&P 500 they don’t want to just buy $500 of it, they want to trade it with options and enter at just the lowest price with $5,000 they don’t have and earn $50,000 off a perfect move with a very tight overleveraged position.
This usually results in them simply losing their $5,000 that they can’t afford to lose. Instead, they’d be better off just trading the S&P 500 and not bothering with options until they have more experience. Simply buying good things low and selling them at their highs is a great way to earn some extra and consistent money over time.
After all, get rich quick schemes are usually just a way for people without money to lose what little they have and get poor quick.
Thanks for reading!
Have a wonderful day!
Best wishes to you!
:))))))))))))))))))))))))
However, many people buy high and sell low in the market because of their fear and greed and need to follow the crowd.
If you do what the crowd does then you’ll get the same results that the crowd gets.
Often it takes novice traders a lot of courage and energy to get into a market. Unless they are sure it is trending strongly up, they won’t get in. As soon as it hits all time highs they leap in and are ready for the market to keep shooting up indefinitely. Somehow that just never happens…
Meanwhile when the market is low they keep panicking and selling off what they have at loss after loss instead of simply waiting out the crash and for things to recover. This is often because they trade with money that they can’t afford to lose, so have no real ability to stay in the market through any negative fluctuations.
Personally I recommend buying into the market whenever it goes low and putting your money into great things like the S&P 500 index. Whenever the market dips it never hurts to pick up some S&P 500 and sell it when the market hits all time highs once again.
After all, buying low and selling high is not rocket science. The issue is that many people want to time the market and get in at just the lowest possible price and then leverage up big time so that a small event can make them a fortune.
For example, with the S&P 500 they don’t want to just buy $500 of it, they want to trade it with options and enter at just the lowest price with $5,000 they don’t have and earn $50,000 off a perfect move with a very tight overleveraged position.
This usually results in them simply losing their $5,000 that they can’t afford to lose. Instead, they’d be better off just trading the S&P 500 and not bothering with options until they have more experience. Simply buying good things low and selling them at their highs is a great way to earn some extra and consistent money over time.
After all, get rich quick schemes are usually just a way for people without money to lose what little they have and get poor quick.
Thanks for reading!
Have a wonderful day!
Best wishes to you!
:))))))))))))))))))))))))
![](https://c.mql5.com/1/0/sale_at_the_market.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Martingaling is often thought to be the worst trading technique of all time.
However, this is often because of the emotions people have about it and not always statistical fact. So today I want to go through the positives and negatives of martingaling and where it can work and why for most it never works.
Let’s start off with the martingale theory.
Let’s say we’re going to play a game where we bet on the outcome of a coin flip. Examining the coin, we make sure that it truly is a fair coin with a 50/50 chance of heads or tails.
Over a large enough series of coin flips, we thus know that the coin will be heads 50% of the time, and tails 50% of the time.
So, we place our first bet of $1 on the coin flip and call heads. The coin comes up tails and we lose $1.
The odds on the next coin flip coming up tails based on the single coin flip are 50/50, but in the series, the chance of the next flip also being tails is now 25% with a 75% chance of it being heads.
So, we double our $1 bet and bet on heads. With $2 here we will not only win back our $1 lost, but will also earn $1 profit.
If the coin comes up tails again, then we bet $4 with the odds now being 87.5% that we’re right. And if we still lose, then $8 on the next flip where we have a 93.75% chance of being correct. And so on and so forth.
The martingale theory is rather straightforward and statistically makes sense. However, for it to always work you would need an infinite amount of time and money.
The main problem with martingaling is that it cannot work forever. Eventually a very rare event can occur and can wipe out the finite amount of money that you have.
Thus, martingale is not going to work forever, but that doesn’t mean that it cannot be used effectively. What you can do is first off test the strategy against all past market events.
A majority of martingale systems fail because people don’t backtest them. Over 99% of all martingale systems will fail on backtests some time in the last 15 years. It’s always important to backtest at least the past 15 years before implementing any strategy.
If a strategy works for the past 15 years with a martingale method, then you can always then limit the loss in case a very rare event were to occur.
For example, I have a martingale method that I like that makes a consistent profit of 200% per year. I limit it with a 55% stop loss, which was never hit in any year on backtests or any forward test either. Then if an event that never occurred before occurs at any point, at least 45% of the account would be protected.
With such a system it’s easy to triple your money in a single year, take out your original investment and keep growing money with it while protecting against the worst case scenario.
Thus, I have to say that martingaling is not a great idea compared to a fixed SL and risk management, but it’s not like it’s fatally flawed either.
The 2 most important things are that you:
-1: Backtests it at least for the past 15 years.
-2: Employ an equity stop loss to protect against never before seen events.
Thanks for reading!
Cheers!
:))))))))))))))))))))
However, this is often because of the emotions people have about it and not always statistical fact. So today I want to go through the positives and negatives of martingaling and where it can work and why for most it never works.
Let’s start off with the martingale theory.
Let’s say we’re going to play a game where we bet on the outcome of a coin flip. Examining the coin, we make sure that it truly is a fair coin with a 50/50 chance of heads or tails.
Over a large enough series of coin flips, we thus know that the coin will be heads 50% of the time, and tails 50% of the time.
So, we place our first bet of $1 on the coin flip and call heads. The coin comes up tails and we lose $1.
The odds on the next coin flip coming up tails based on the single coin flip are 50/50, but in the series, the chance of the next flip also being tails is now 25% with a 75% chance of it being heads.
So, we double our $1 bet and bet on heads. With $2 here we will not only win back our $1 lost, but will also earn $1 profit.
If the coin comes up tails again, then we bet $4 with the odds now being 87.5% that we’re right. And if we still lose, then $8 on the next flip where we have a 93.75% chance of being correct. And so on and so forth.
The martingale theory is rather straightforward and statistically makes sense. However, for it to always work you would need an infinite amount of time and money.
The main problem with martingaling is that it cannot work forever. Eventually a very rare event can occur and can wipe out the finite amount of money that you have.
Thus, martingale is not going to work forever, but that doesn’t mean that it cannot be used effectively. What you can do is first off test the strategy against all past market events.
A majority of martingale systems fail because people don’t backtest them. Over 99% of all martingale systems will fail on backtests some time in the last 15 years. It’s always important to backtest at least the past 15 years before implementing any strategy.
If a strategy works for the past 15 years with a martingale method, then you can always then limit the loss in case a very rare event were to occur.
For example, I have a martingale method that I like that makes a consistent profit of 200% per year. I limit it with a 55% stop loss, which was never hit in any year on backtests or any forward test either. Then if an event that never occurred before occurs at any point, at least 45% of the account would be protected.
With such a system it’s easy to triple your money in a single year, take out your original investment and keep growing money with it while protecting against the worst case scenario.
Thus, I have to say that martingaling is not a great idea compared to a fixed SL and risk management, but it’s not like it’s fatally flawed either.
The 2 most important things are that you:
-1: Backtests it at least for the past 15 years.
-2: Employ an equity stop loss to protect against never before seen events.
Thanks for reading!
Cheers!
:))))))))))))))))))))
![](https://c.mql5.com/1/0/Screenshot_2023-02-09_091936.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Many people go into trading looking for a way to pay their bills.
These people usually have a large number of monthly bills and liabilities and are looking to quickly come up with more income to cover these expenses.
Usually their bills aren’t outrageously high, but they want to come up with an easy extra income just to pay the bills.
One of the questions I get the most is, “How much money do I need to trade with to earn $2,000 per month?”
My usual answer is, “$20,000 to $40,000 is usually what you’d need to start with to consistently make $2,000 per month.”
That’s not an answer people like.
Many want to invest $500 and next month have $2,000 of extra income coming in every month from there on out. That’s simply not how trading and investing works.
If you are an expert investor and have lots of connections and great deal making skills, then you can use the power of OPM (Other People’s Money) to quickly make a lot without having to invest a ton yourself. But, if you know how to do that, then you’re likely already doing that and earning well off it. A majority of new traders just want to use their own capital and don’t know anything about how to utilize other people’s capital in a venture.
So, many try to increase their income quickly by investing $500 and quickly trying to trade that up to being worth $2,000 per month. None of them succeed and quickly they are down $500 and looking for a way to get $2,000 per month by any means necessary.
This simply isn’t the right approach. Trading is not a way to pay your bills and cover your liabilities next month. Trading is a way to reach financial freedom through compound interest.
If you earn 10% per month for 10 years then you will be financially free in less than 10 years.
Year 0: $500.00
Year 1: $1,569.00
Year 2: $4,924.00
Year 3: $15,456.00
Year 4: $48,508.00
Year 5: $152,240.00
Year 6: $477,796.00
Year 7: $1,499,531.00
Year 8: $4,706,171.00
If you just want to pay your bills then trading and investing aren’t going to do that for you anytime soon. If you want financial freedom, then trading and investing will get you there easily.
There’s certainly no need even to make 10% per month. 5% per month can have you there in just a few more years.
So instead of trying to make 400% per month and failing every month, it’s best to focus on the long term and make a consistent monthly profit that compounds your way to financial freedom.
Thanks for reading!
Have a great day!
:))))))))))))))))))))))
These people usually have a large number of monthly bills and liabilities and are looking to quickly come up with more income to cover these expenses.
Usually their bills aren’t outrageously high, but they want to come up with an easy extra income just to pay the bills.
One of the questions I get the most is, “How much money do I need to trade with to earn $2,000 per month?”
My usual answer is, “$20,000 to $40,000 is usually what you’d need to start with to consistently make $2,000 per month.”
That’s not an answer people like.
Many want to invest $500 and next month have $2,000 of extra income coming in every month from there on out. That’s simply not how trading and investing works.
If you are an expert investor and have lots of connections and great deal making skills, then you can use the power of OPM (Other People’s Money) to quickly make a lot without having to invest a ton yourself. But, if you know how to do that, then you’re likely already doing that and earning well off it. A majority of new traders just want to use their own capital and don’t know anything about how to utilize other people’s capital in a venture.
So, many try to increase their income quickly by investing $500 and quickly trying to trade that up to being worth $2,000 per month. None of them succeed and quickly they are down $500 and looking for a way to get $2,000 per month by any means necessary.
This simply isn’t the right approach. Trading is not a way to pay your bills and cover your liabilities next month. Trading is a way to reach financial freedom through compound interest.
If you earn 10% per month for 10 years then you will be financially free in less than 10 years.
Year 0: $500.00
Year 1: $1,569.00
Year 2: $4,924.00
Year 3: $15,456.00
Year 4: $48,508.00
Year 5: $152,240.00
Year 6: $477,796.00
Year 7: $1,499,531.00
Year 8: $4,706,171.00
If you just want to pay your bills then trading and investing aren’t going to do that for you anytime soon. If you want financial freedom, then trading and investing will get you there easily.
There’s certainly no need even to make 10% per month. 5% per month can have you there in just a few more years.
So instead of trying to make 400% per month and failing every month, it’s best to focus on the long term and make a consistent monthly profit that compounds your way to financial freedom.
Thanks for reading!
Have a great day!
:))))))))))))))))))))))
![](https://c.mql5.com/1/0/Screenshot_2023-02-08_100031.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Many traders fall victim to the hindsight bias.
The hindsight bias is also known as the knew-it-all-along effect. This bias makes it so people think that what they see now was easily predictable before it happened.
Many novice traders look at a chart and see a massive price movement. For example, let’s say they see a stock that shot up 50% over a couple months. After seeing that, they feel like they could have easily gained 50% plus on their money and would have known the stock was going to shoot up like that.
This is one of the primary factors that gets novice traders to believe that trading is easy. They see a few charts and now think they can get rich.
The thing is, just because you see a massive price spike after the fact doesn’t mean you can predict such an event before it happens consistently.
In the stock example, the stock may have shot up because of a merger or a new product release that you couldn’t have known about before it happened. (At least not legally.) It’s easy to see what has happened, but to predict every stock that will shoot up 50% versus those that will dump 50% isn’t going to be as easy as hindsight is. After all, hindsight is 20/20.
So, many novice traders go in with the idea that they can predict the future easily and proceed to lose all their money time and time again.
Instead of going with the hindsight bias, they are much better off learning trading psychology and learning how to approach probability based games instead of trying to predict the future with their crystal ball, going for 100% certainty in a situation where certainty certainly doesn’t exist.
Thanks for reading!
Best wishes to you!
Cheers!
:)))))))))))))))))))))))
The hindsight bias is also known as the knew-it-all-along effect. This bias makes it so people think that what they see now was easily predictable before it happened.
Many novice traders look at a chart and see a massive price movement. For example, let’s say they see a stock that shot up 50% over a couple months. After seeing that, they feel like they could have easily gained 50% plus on their money and would have known the stock was going to shoot up like that.
This is one of the primary factors that gets novice traders to believe that trading is easy. They see a few charts and now think they can get rich.
The thing is, just because you see a massive price spike after the fact doesn’t mean you can predict such an event before it happens consistently.
In the stock example, the stock may have shot up because of a merger or a new product release that you couldn’t have known about before it happened. (At least not legally.) It’s easy to see what has happened, but to predict every stock that will shoot up 50% versus those that will dump 50% isn’t going to be as easy as hindsight is. After all, hindsight is 20/20.
So, many novice traders go in with the idea that they can predict the future easily and proceed to lose all their money time and time again.
Instead of going with the hindsight bias, they are much better off learning trading psychology and learning how to approach probability based games instead of trying to predict the future with their crystal ball, going for 100% certainty in a situation where certainty certainly doesn’t exist.
Thanks for reading!
Best wishes to you!
Cheers!
:)))))))))))))))))))))))
![](https://c.mql5.com/1/0/Screenshot_2023-02-07_092754.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Greed kills in the trading world.
I see trader’s greed kill their accounts time and time again every day of the week.
Far too many “traders” lose their money, and often money they can’t afford to lose because of their greed.
They want 10% per day consistently each and every day. So, they overrisk and blow their accounts time and time again.
Sure, they have a few days that they make 10% per day.
Often it goes like:
+10% Monday.
+10% Tuesday.
-80% Wednesday.
The scam world has a lot to do with trader’s unrealistic and greedy approach to trading. So many scammers promise 10% per day because they never have to deliver it. With so many scammers out there so many new traders think they can get rich quick off 10% per day, and that that return rate is reasonable.
IT REALLY ISN’T!
Instead, what I recommend is that traders hold themselves to reasonable standards. 5-10% per month is a great goal to shoot for. On 5-10% per month you can be financially free in 10 years. It’s not 3 months like we all want it to be, but it’s attainable.
And hey, if you can make way more than 10% per month, then that’s great!
I just find that so many traders lose all their money going for 10% per day, when instead they could be building wealth by just going for 10% per month.
After all, there is nothing wrong with doing what works, instead of reaching for the impossible and losing all you have time and time again.
Have a great day!
Best wishes to you!
Cheers!
:))))))))))))))))))))))))))))))))
I see trader’s greed kill their accounts time and time again every day of the week.
Far too many “traders” lose their money, and often money they can’t afford to lose because of their greed.
They want 10% per day consistently each and every day. So, they overrisk and blow their accounts time and time again.
Sure, they have a few days that they make 10% per day.
Often it goes like:
+10% Monday.
+10% Tuesday.
-80% Wednesday.
The scam world has a lot to do with trader’s unrealistic and greedy approach to trading. So many scammers promise 10% per day because they never have to deliver it. With so many scammers out there so many new traders think they can get rich quick off 10% per day, and that that return rate is reasonable.
IT REALLY ISN’T!
Instead, what I recommend is that traders hold themselves to reasonable standards. 5-10% per month is a great goal to shoot for. On 5-10% per month you can be financially free in 10 years. It’s not 3 months like we all want it to be, but it’s attainable.
And hey, if you can make way more than 10% per month, then that’s great!
I just find that so many traders lose all their money going for 10% per day, when instead they could be building wealth by just going for 10% per month.
After all, there is nothing wrong with doing what works, instead of reaching for the impossible and losing all you have time and time again.
Have a great day!
Best wishes to you!
Cheers!
:))))))))))))))))))))))))))))))))
![](https://c.mql5.com/1/253/1675184202903.jpeg)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Many novice “traders” want to put in zero work yet reap massive rewards.
Trading is a profession and it requires a lot of work to be good at it.
In the markets you are going up against the richest, smartest, and most powerful people in the world. It is not something where you can make a ton without knowing what you are doing.
So, I recommend 3 main paths then to novice “traders.”
-1: Be an investor instead.
-2: Put in the work.
-3: Back someone who already put in the work.
-1: Be an investor instead. Indeed, being a longer term trader and more of an investor than trader is a great option for many people. You can buy the S&P 500 when it’s low and hold it for years, then keep buying dips along the way.
Instead of trying to make a fortune, you invest and can earn quite a nice bit of money over enough years.
-2: Put in the work. Usually we are talking about thousands of hours of work. It’s well worth it, but it’s a lot of work on trading psychology, strategy development, backtesting, forward testing, etc…
The work is all worth it, but it’s important that you’re ready to do all the work needed over years to get where you want to go, not just trying to find tips or tricks and get rich overnight.
-3: Back someone who already put in the work. This option I can highly recommend. Find someone with great trading and have them manage your account for you. This can work out extremely well, but only if you make sure that your person is good.
Most account managers will just lose your money, so it’s very important to get a good one.
If you’re interested in trying out one of my trading systems for 2 months for free on any demo account from any broker you like, feel free to message me. :)
Anyways, trading is something that takes time and effort. That means it’s not for everyone who isn’t ready to put in the work.
Have a wonderful day!
Best wishes to you!
Cheers!
:)))))))))))))))))))))))))
Trading is a profession and it requires a lot of work to be good at it.
In the markets you are going up against the richest, smartest, and most powerful people in the world. It is not something where you can make a ton without knowing what you are doing.
So, I recommend 3 main paths then to novice “traders.”
-1: Be an investor instead.
-2: Put in the work.
-3: Back someone who already put in the work.
-1: Be an investor instead. Indeed, being a longer term trader and more of an investor than trader is a great option for many people. You can buy the S&P 500 when it’s low and hold it for years, then keep buying dips along the way.
Instead of trying to make a fortune, you invest and can earn quite a nice bit of money over enough years.
-2: Put in the work. Usually we are talking about thousands of hours of work. It’s well worth it, but it’s a lot of work on trading psychology, strategy development, backtesting, forward testing, etc…
The work is all worth it, but it’s important that you’re ready to do all the work needed over years to get where you want to go, not just trying to find tips or tricks and get rich overnight.
-3: Back someone who already put in the work. This option I can highly recommend. Find someone with great trading and have them manage your account for you. This can work out extremely well, but only if you make sure that your person is good.
Most account managers will just lose your money, so it’s very important to get a good one.
If you’re interested in trying out one of my trading systems for 2 months for free on any demo account from any broker you like, feel free to message me. :)
Anyways, trading is something that takes time and effort. That means it’s not for everyone who isn’t ready to put in the work.
Have a wonderful day!
Best wishes to you!
Cheers!
:)))))))))))))))))))))))))
![](https://c.mql5.com/1/253/Screenshot_2023-01-30_101507.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
A lot of traders come to me asking for advice when they are first starting out.
Usually they’ve found a broker, learned a few technical analysis strategies, but so far aren’t making money, and are simply losing money.
They usually come to me hoping for a tip or two to fix their trading.
Unfortunately their failure usually isn’t a lack of technical knowledge, but rather psychological knowledge.
To succeed as a trader we all must understand the game we are playing and why we are playing it.
Too many new traders try to hit a home run every pitch. They keep trading in their bat every time they don’t hit a home run because they want a home run every time. They think they can get a home run every time and just want a few tips on how to always get a home run.
If you want to be a great baseball player, you have to know you can’t get a home run every hit.
If you want to be a great trader, you have to know that you can’t win every trade.
You don’t need to hit a home run every time to make it to the hall of fame.
You don’t need to win every trade to make a fortune trading.
To those just starting out I always recommend learning the trading psychology first, then the technicals next. That’s a decision you’ll never regret.
Cheers!
Usually they’ve found a broker, learned a few technical analysis strategies, but so far aren’t making money, and are simply losing money.
They usually come to me hoping for a tip or two to fix their trading.
Unfortunately their failure usually isn’t a lack of technical knowledge, but rather psychological knowledge.
To succeed as a trader we all must understand the game we are playing and why we are playing it.
Too many new traders try to hit a home run every pitch. They keep trading in their bat every time they don’t hit a home run because they want a home run every time. They think they can get a home run every time and just want a few tips on how to always get a home run.
If you want to be a great baseball player, you have to know you can’t get a home run every hit.
If you want to be a great trader, you have to know that you can’t win every trade.
You don’t need to hit a home run every time to make it to the hall of fame.
You don’t need to win every trade to make a fortune trading.
To those just starting out I always recommend learning the trading psychology first, then the technicals next. That’s a decision you’ll never regret.
Cheers!
![](https://c.mql5.com/1/253/understand_the_game.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
A lot of people ask me, “Why bother trying to help others in the trading community?”
They usually then list a reason why helping isn’t worth it.
-“People need to learn on their own.”
-“You can’t educate everyone.”
-“People will always fall for scams because they want to get rich quick.”
-“Having more people win makes it so you can’t win off them as easily.”
And people go on and on with countless reasons like these.
So, why do I help in the trading community?
I help because I care.
When I started out, no one helped me. I had to learn on my own all of what I was doing. But, I always wished there had been someone there to at least give me some good advice here and there.
Now that I’m an expert, I try to give back and help others have an easier time than I ever did.
To address the former statements:
-“People need to learn on their own.”
While learning on your own can be valuable, struggling unnecessarily is not. Learning to trade is a lot easier if someone helps you along the way.
-“You can’t educate everyone.”
Of course not everyone is ready to learn or wants to be helped, but I am happy to help those who are ready to improve their trading from psychology to automation.
-“People will always fall for scams because they want to get rich quick.”
This only happens because people aren’t educated on how to tell the difference between scams and real results. Teaching this has helped a lot of people not get scammed. Also, on social media, demanding myfxbook and 3rd party verification has really shut down a ton of scammers with screenshots and nothing else.
-“Having more people win makes it so you can’t win off them as easily.”
This is a simplistic attitude that fails to take into account the size of the market and the opportunities out there. Very few will learn to be successful traders, so there’s always dumb money out there to get. Teaching others doesn’t mean that then everyone will become great traders and that all opportunities will be gone tomorrow.
Thanks for reading!
If you ever want my advice or help, just comment or message me. I’m happy to help.
Cheers!
:)))))))))))))))))))))
They usually then list a reason why helping isn’t worth it.
-“People need to learn on their own.”
-“You can’t educate everyone.”
-“People will always fall for scams because they want to get rich quick.”
-“Having more people win makes it so you can’t win off them as easily.”
And people go on and on with countless reasons like these.
So, why do I help in the trading community?
I help because I care.
When I started out, no one helped me. I had to learn on my own all of what I was doing. But, I always wished there had been someone there to at least give me some good advice here and there.
Now that I’m an expert, I try to give back and help others have an easier time than I ever did.
To address the former statements:
-“People need to learn on their own.”
While learning on your own can be valuable, struggling unnecessarily is not. Learning to trade is a lot easier if someone helps you along the way.
-“You can’t educate everyone.”
Of course not everyone is ready to learn or wants to be helped, but I am happy to help those who are ready to improve their trading from psychology to automation.
-“People will always fall for scams because they want to get rich quick.”
This only happens because people aren’t educated on how to tell the difference between scams and real results. Teaching this has helped a lot of people not get scammed. Also, on social media, demanding myfxbook and 3rd party verification has really shut down a ton of scammers with screenshots and nothing else.
-“Having more people win makes it so you can’t win off them as easily.”
This is a simplistic attitude that fails to take into account the size of the market and the opportunities out there. Very few will learn to be successful traders, so there’s always dumb money out there to get. Teaching others doesn’t mean that then everyone will become great traders and that all opportunities will be gone tomorrow.
Thanks for reading!
If you ever want my advice or help, just comment or message me. I’m happy to help.
Cheers!
:)))))))))))))))))))))
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
No one likes waiting, but it’s an incredibly important part of trading and investing.
The impatient trader will lose their money in no time at all, because they are leaping into trades to satisfy their emotions, not because it’s a real opportunity.
Most of trading is waiting, whether you’re trading yourself, having a robot do it for you, or having someone else do it for you. There is no way to rush the process, waiting is a necessity.
An opportunity isn’t there every 3 seconds, so learn to be patient and act on your edge when it appears, not when you’d like it to appear.
Cheers and have a wonderful day!
:))))))))))))))))))))))
The impatient trader will lose their money in no time at all, because they are leaping into trades to satisfy their emotions, not because it’s a real opportunity.
Most of trading is waiting, whether you’re trading yourself, having a robot do it for you, or having someone else do it for you. There is no way to rush the process, waiting is a necessity.
An opportunity isn’t there every 3 seconds, so learn to be patient and act on your edge when it appears, not when you’d like it to appear.
Cheers and have a wonderful day!
:))))))))))))))))))))))
![](https://c.mql5.com/1/253/patience_in_trading.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Often people fail because they approach trading like it’s a chain. After all, “A chain is only as strong as its weakest link.”
So, with trading, people tend to ditch systems that lose or have losses, because they think that if one trade loses, then the chain is going to fall apart.
However, there is no successful trading system that can win every trade all of the time.
Psychologically we’re conditioned to still think of trading like a chain and we feel the need for trades to win every time or else we feel that the system is flawed, even if intellectually we know better.
Our emotions keep saying to us, “If the system can lose one then it can lose everything.”
This isn’t true, but our emotions naturally set us up to feel this way and to seek out systems that win every time, despite the fact that such systems do not exist.
Instead, there is another way to believe in your trading system while not being unrealistic and needing the system to win every single trade.
This process requires two sets of beliefs.
-1: The outcome of a single trade is random. There is no way to know if it will win or lose.
-2: The outcome of a large series of trades is consistent and knowable.
When you have an edge in the market you simply win more than lose. There is no way to know which trades will win or lose. After all, we all want to win all the trades and don’t want any losses.
Yet, with these two beliefs and a real edge it’s easy to emotionally feel good about trading.
If you believe that the single trade’s outcome is random, then you don’t feel like it has to win for you to be ok.
If you believe that over a large series of trades that you have an edge, then you trust that overall you will win.
Of course, a necessary step is actually testing your edge, rigorously. Mere belief will not help you, only a well backtested and forward tested system is worth believing in.
Still, once you have a good edge, these two sets of beliefs will allow you to use it without anguish or unfairly judging a system because it has a few losses.
These two beliefs are the key to great trading psychology.
Cheers and have a great day!
:))))))))))))))))))))))))
So, with trading, people tend to ditch systems that lose or have losses, because they think that if one trade loses, then the chain is going to fall apart.
However, there is no successful trading system that can win every trade all of the time.
Psychologically we’re conditioned to still think of trading like a chain and we feel the need for trades to win every time or else we feel that the system is flawed, even if intellectually we know better.
Our emotions keep saying to us, “If the system can lose one then it can lose everything.”
This isn’t true, but our emotions naturally set us up to feel this way and to seek out systems that win every time, despite the fact that such systems do not exist.
Instead, there is another way to believe in your trading system while not being unrealistic and needing the system to win every single trade.
This process requires two sets of beliefs.
-1: The outcome of a single trade is random. There is no way to know if it will win or lose.
-2: The outcome of a large series of trades is consistent and knowable.
When you have an edge in the market you simply win more than lose. There is no way to know which trades will win or lose. After all, we all want to win all the trades and don’t want any losses.
Yet, with these two beliefs and a real edge it’s easy to emotionally feel good about trading.
If you believe that the single trade’s outcome is random, then you don’t feel like it has to win for you to be ok.
If you believe that over a large series of trades that you have an edge, then you trust that overall you will win.
Of course, a necessary step is actually testing your edge, rigorously. Mere belief will not help you, only a well backtested and forward tested system is worth believing in.
Still, once you have a good edge, these two sets of beliefs will allow you to use it without anguish or unfairly judging a system because it has a few losses.
These two beliefs are the key to great trading psychology.
Cheers and have a great day!
:))))))))))))))))))))))))
![](https://c.mql5.com/1/252/Screenshot_2023-01-20_131303.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
I meet a lot of “traders” who have a hard time financially because they’ve traded with money they couldn’t afford to lose.
Many people have taken out large loans to trade with, have traded with money off their credit cards, have borrowed from friends to trade, etc…
These stories rarely end well. Usually, they end with massive losses and then a life filled with compounding debts.
So, I always recommend that you NEVER trade with money you CAN’T afford to lose.
In the markets and in life, you do have to take some risks, but it’s important not to take stupid risks that leave you with a lifetime of crushing debt.
There is nothing wrong with starting small and gaining consistency before scaling up your trading and making the big money that you want.
So NEVER trade with money you CAN’T afford to lose.
Cheers and have a great day!
:))))))))))))))))))))
Many people have taken out large loans to trade with, have traded with money off their credit cards, have borrowed from friends to trade, etc…
These stories rarely end well. Usually, they end with massive losses and then a life filled with compounding debts.
So, I always recommend that you NEVER trade with money you CAN’T afford to lose.
In the markets and in life, you do have to take some risks, but it’s important not to take stupid risks that leave you with a lifetime of crushing debt.
There is nothing wrong with starting small and gaining consistency before scaling up your trading and making the big money that you want.
So NEVER trade with money you CAN’T afford to lose.
Cheers and have a great day!
:))))))))))))))))))))
![](https://c.mql5.com/1/252/never_trade_with_money_you_cantt_afford_to_lose.png)
![Walter Joseph Dillard](https://c.mql5.com/avatar/2023/2/63fb8170-384a.jpg)
Walter Joseph Dillard
Nearly everyone who goes into trading thinks they’re going to get rich quickly. That never ends up working out.
I’m not sure where the get rich quick idea comes from, but it’s an infectious and problematic idea that gets to nearly all of us.
Obviously, we all want to be rich tomorrow and not in 10 years. After all, it would be great to be rich tomorrow and not have to wait.
However, riches overnight aren’t a real thing that works out for people, particularly in the world of trading.
I know many traders who try to make 500% per month. Instead, they lose 100% per month consistently. Extremely high return rates simply aren’t maintainable.
Now, if you know what you are doing, you can make a lot lot of money trading. There’s no denying that, but it’s not going to come from making 500% per month. Instead, it’s primarily best to manage large investor funds once you prove you can deliver desirable results. (And of course only do this when legally you are allowed to!)
At the end of the day, consistency is king and fast money in trading isn’t something that works out well.
I personally recommend seeking financial freedom in a 5 to 10 year period. If you can do it in less, then great for you! However, I find that too many people go for 2 to 3 months and not 5 to 10 years, so things rarely work out for them.
I recommend going for the right period of time, and getting the freedom you deserve.
Cheers!
:)))))))))))))))))))))))))))))
I’m not sure where the get rich quick idea comes from, but it’s an infectious and problematic idea that gets to nearly all of us.
Obviously, we all want to be rich tomorrow and not in 10 years. After all, it would be great to be rich tomorrow and not have to wait.
However, riches overnight aren’t a real thing that works out for people, particularly in the world of trading.
I know many traders who try to make 500% per month. Instead, they lose 100% per month consistently. Extremely high return rates simply aren’t maintainable.
Now, if you know what you are doing, you can make a lot lot of money trading. There’s no denying that, but it’s not going to come from making 500% per month. Instead, it’s primarily best to manage large investor funds once you prove you can deliver desirable results. (And of course only do this when legally you are allowed to!)
At the end of the day, consistency is king and fast money in trading isn’t something that works out well.
I personally recommend seeking financial freedom in a 5 to 10 year period. If you can do it in less, then great for you! However, I find that too many people go for 2 to 3 months and not 5 to 10 years, so things rarely work out for them.
I recommend going for the right period of time, and getting the freedom you deserve.
Cheers!
:)))))))))))))))))))))))))))))
![](https://c.mql5.com/1/252/Screenshot_2023-01-09_153246.png)
: