The Simplest Way to Increase Profits

Regardless of what you trade (whether e-Mini stock index futures, stocks, options or whatever), profits are calculated as follows:

Profits = Wins – Losses - Costs

According to the formula, to increase “Profits”, you can do one or a combination of the following:
1. Increase Wins.
2. Reduce Losses.
3. Reduce Costs.

I believe the simplest way to “Reduce Losses” is to abstain from trading when you are likely to get losses. It’s not complex and it involves no physical work. That is one of the secrets of the world’s best traders.

You may have heard of “Cutting Your Losses and Letting Winners Run”. But there is not much in published trading literature about abstaining from trading when losses are likely to occur.

Over the next few articles, I will be discussing the occasions when you are likely to have trading losses.

At my commercial website, LeisurelyCashFlow.com, I let subscribers copy my trades. On most days, no trading occurs. I abstain from trading on days when losses are likely to occur in order to increase profits in the equation:

Profits = Wins – Losses – Costs

We'll chat again soon ...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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