Today I've read something that reminded me very important thing. I totally forgot about it although I used similar concept quite alot a few years ago.
"I was looking over my trading over the weekend and my win rate is too high. Yeah weird I am complaining that trades are successful. But here is the problem for my win rate to increase my risk reward has to decrease. I am taking profits to soon and not letting runners run. So my RR gets screwed up. It also is not financially as successful as you dont get the runners. So some times I’m winning is loosing. It’s things like this you must review your trades for.
...It is the most meaningless ratio 67% of retail are right on direction but for evey $1 they make they loose $2 and so even though the usual win ratio of a retail trader is good they loose. A good win ratio in my trading means risk avoidence and this is a job of risk."
"... I exit early which fulfills a need to relive pressure associated with being in the trade and the short term feeling of success of minor profit. "
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