Has anyone got a stockmarket trading plan which delivers more winning than losing trades?

by David Jenyns on June 5, 2011

Question by John: Has anyone got a stockmarket trading plan which delivers more winning than losing trades?

Best answer:

Answer by raysor
Unfortunatley not.

What do you think? Answer below!

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Len June 5, 2011 at 11:42 am

I operate with such a plan as do many traders I personally know. We regularly operate on a 60% or better basis meaning that we’re green in at least six out of ten picks longer term and a much higher percentage in terms of trades. We don’t operate on any publicly available stratagem, however. Most of this year I’ve enjoyed a range of 68% to 74% but it’s dropped to just under 60% over the past two weeks.

For me, winning plays result from studying fundamentals plus intense awareness of geopolitical issues with charts bringing a bit of clarity.

Len

Kirkuk June 5, 2011 at 12:35 pm

yes, the moon cycle as there is a correlation between lunar phases and stock prices in 48 Countries,
the moon rotates around the earth every 29.53 days,thus,using a normal trading week of 4.85 days(to account for occasional holidays) that gives around 20 days of lunar cycle behaviour – buy on waxing and sell on waning,

OR
i just visit London zoo with my girlfriend and talk to a chimp we call Stan and ask for his advice mentioning different stock names,the guy is a natural born trader….
he was extremely interested in the difference between support and resistance in the stock market

StrategiesForMarket.com June 5, 2011 at 12:55 pm

It’s not about how many trades you win or lose, but your expected value. How about losing a 1 dollar twice and then winning 3 dollars?

Karen June 5, 2011 at 12:56 pm

I agree with Len — most successful traders have more winning trades than losing trades. 60% winners is the absolute minimum for a winning strategy — I try to trade only 70% or better. That means I trade less frequently, but my winning percentage is a little better.

It’s not so much how many winners you have, but the size of your losses. If you keep your losses small and have some decent wins then it’s possible to still be profitable. I’ve seen traders with a 40% win ratio that are extremely profitable because they have tremendous win size while keeping losses very small.

Stock Trading Warrior June 5, 2011 at 1:37 pm

Have you ever heard of the book Market Wizards by Jack Schwager. He interviews some of the best traders out there and when the top traders where asked what makes a trader successful, a recurring theory of theirs is that every trader must make their own trading plans because that is the plan they will follow most closely. So much so, that one trader willingly gives out her strategy because she believes that most traders don’t have the discipline to implement her strategy successfully. I believe that’s true. As an example, could I use Joe Schmoe’s strategy? Probably, but if it were too much trading for me, I wouldn’t be successful with it because I’d be anxious about trading so frequently and over time, eventually fail.

I think many of the known strategies out there can offer more winning than losing trades – swing trading, 50/50 strategy, rolling stocks, ADX strategies, etc., but the strategies alone don’t work. As others here have mentioned, you must understand risk management, position sizing, price patterns, chart reading and market trend.

So the best thing is to read a bit about stock trading strategies, put together a plan that works for you, fits into your schedule, sounds logical and reasonable to you. It may not be the answer you want to hear, but if you find the stock trading plan that fits, it will serve you your whole life.

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