Does more trades = More Profit?
Whenever I met my friends and they started asking me about the frequency of my trades. They will always say “Why don’t you place more trade since you have such a reliable trading strategy?
Personally I place about 10 to 12 trades every month as I am very particular about my entry and exit strategy. Whenever I do not see the exact setup that I want, I will not even touch the trigger button and this is DISCIPLINE.
To most people, they often thought that since I have a system that is so reliable, why I don’t place more trade everyday and make more profit. Therefore I am going to share with you some experience that I have.
This is totally based on my own judgment and experience and it may not be what other traders are thinking about. I feel that the longer I spend looking at the chart, the more confused and emotional I became and this usually leads to emotional trading which will almost always end up with a loss.
If you have been reading my blog for sometime, you will see me emphasizing the importance of probability. When I say that I have a reliable trading system, most of you may be thinking that I have a system that can make me profit 100% of the time. SORRY to disappoint you as there is no system that can give you 100% winning percentage. My strategies can give me 70% accuracy and I rely a lot on the risk reward ratio and this means that I do have a 30% chance of losing for every extra trade that I place.
The longer you spend looking at your chart for entry opportunity, the lower the chance of you getting into a good trade as your concentration will decrease over time.
For me, I do not look at my trading chart the whole day as it will be very tiring and this will defy the freedom that trading is supposed to give me. Personally, I will look at my chart 1 hour before the London Open and then analysed the price movement for another hour and that’s it. If there is a trade that I am looking for, I will enter the trade and log out of my system.
When I am new to trading, I find myself sticking to the monitor screen whenever I enter a trade until the point it is either stop out or take profit. I often find myself meddling with the stop loss whenever I see the price getting closer to my stop loss and exit my profit early thinking that the market might take it back.
This has greatly affects my risk reward ratio and since then, I will always log out of my platform once I enter a trade with properly placed stop loss and take profit level. In addition, this has also given me more time to do what I love and accompanying my love ones.
In short, you have to fix certain time of the day to look at your chart and search for entry opportunity. Without a proper time table, you will find yourself to be a slave to trading instead of enjoying the freedom it is supposed to deliver.
So to end this article, I will like to emphasize that
More Trade is not equal to More Profit.