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12/11/14
11:25
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Originally posted by smurfette
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Naish/Mick. Next look into RR ie Risk/Reward. Here you can improve your odds of being profitable even further I look for RRs for 1:3. So let's say you see a bounce of support at 95c with the current price at $1. But resistance is at $1.15. That gives a RR of 3:1.
So your strategy only needs to play out 1 out of every 4 times for you to break even. That's a 25% win rate. Now imagine if with experience you at nailing entries even 60% of the time. And that's the thing that bozo's don't get about trading. We're not aiming to be correct 100% of the time. We are aiming to make good money when we are correct and lose only a little when we are wrong.
In the case of LNG, this is why I went short in the $3.90s. The reward may not have been that great but also the risk was minimal because we identified distribution.
This is MATHS not MAGIC. Become a mathematician and you can reap a regular guaranteed income. Become a fundamental investor and your destiny is out of your hands.
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"This is MATHS not MAGIC. Become a mathematician and you can reap a regular guaranteed income. Become a fundamental investor and your destiny is out of your hands." Sorry but that's the biggest piece of garbage you've said so far, and just when you were starting to sound more credible.