hahahaha i wonder why hasn't elite trader got as big as social media companies out there ? Am sure this has its own thread somewhere
Thats like what william echardt said that humans tend to maximize the chance of a gain rather than the gain itself i think this is true even outside trading
“It all depends” 1. A Hedge Fund whose strategy buys OTM options looking for that big hit - sure, 10% of the trades account for 90% of the profits. 2. A prop firm like DRW with 1,000 employees that arbitrage and make markets in all things from the mundane to the exotic; exchange and OTC-related - no way, they have at the very least a 50% hit rate.
95% win rate? That's a load of bilge for retail screen jockeys. (Maybe for front-running HFTs..) 95% win rate and still blow out your account? Ridiculous. If you're smart enough to devise a 95% win strategy, you couldn't possibly be naive/stupid enough to lose all your money with it.
Well stated - I think this is something that very seasoned traders come to learn the hard way. Here is a clever & enlightening article that many on here that don't get this concept can learn from with an open mind. https://www.businessinsider.com/the-siren-song-of-high-winning-percentage-2011-4
Yes you can by never closing a losing trade, thats how you achieve such high rate but then your carried out side because your account is liquidated
what iam saying is some people do that hence its possible they cling to 95% win rate but one bad tradr blows their account up Just like selling naked options this is along the lines also of maximize chances of a gain rather than the gain itself