Interesting you say win 50-70% of the time
In my experience 1-2 out of 10 trades end up good winners, 3-4 few pips or go nowhere, 5-6 go against.
Trick is to sell very quick & sharp as soon as they go against or go nowhere. This way it minimises losses. With trading it is all about time
out of the market, not in the market, unlike investing. So for me it is quick in and out - stock goes against me, I am out. Yeah but it can recover - sure but that is another trade. Out. Easier said than done I know.
The good runners - I let them run until say RSI / MACD start approaching overbought territory. If a stock moves a range from 1 to 10, I am happy taking it at 3/4 and selling it at 7. No need to aim for extremes and take unnecessary risk.
Inexperienced traders always look at how much can be made. Experienced trades always look at how much can be lost. Big difference in mindset.
Just looked at prior year's trading statements. The only large losses are in the prolonged holds. The quickly closed losing positions, quite a few of them but minimal loss. Not easy to let go after entering a trade but it keeps the overall bottomline tight over a period of consistent trading.
If you look at it as a business and see how much annual turnover you have done, what annual % profit (or loss) margin on it. If you traded a cumulative $X mil in year with a consistent 3-4% profit you might be doing something right. Even 2% on higher volume. Also do the math on a 3% loss. It doesn't take much to dig a deep hole for yourself in this game. Hence tight loss exits imo.
Cash is cash and what we do is all about leaving with more cash at end of each trade / day / month / year than what we went in with.
@Veritas2000 - sorry got carried away - only the first two lines are a direct response to your post
