Better Trading With Risk Control by Daryl Guppy
How do you improve your trading results? Risk
management, of course.
Understanding how the tools of technical analysis work and how they are applied makes a big difference to your initial trading results. A novice trader will see his or her trading improve quickly at first, but then it all seems to bog down. This becomes even more pronounced when markets become skittery or take on a bearish slant. Despite this performance decline, of course everyone wants to aim for a 90% success rate. Is this achieved through reading, coursework, and better trading programs? Or is there a simpler way?
To study this question, I looked at 16 sample trades. I didnít use random results; these are real trades, real losses, and real returns taken from my own records. The series of sample trades has six common features...