A better way of using %Win

...cont'd from yesterday...

Here’s a statistic that’s porminent in financial newsletter advertisements. Percentage Wins and Percentage Losses, aka respectively %Win and %Loss.

These numbers are easily calculated and well known. They merely tell you what proportion of your trades can be reasonably expected to be winners (or losers). Financial newsletters use this ratio to attract customers. But here’s a better way to use this information.

A better way to use this information is for deciding if you want to continue using your method of trading. If you hate losing, you need a high winning percentage method. It’s well known that low winning percentage methods can be profitable. But if you can’t stand losing, then you should not be using such a system and instead work on changing your system until it shows a higher %Win.

...cont'd tomorrow...

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