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Other than ARB (http://en.wikipedia.org/wiki/Arbitrage) and forgetting exotics.

There are only 3 ways I know of to turn a profit trading stock or Futures.
Its important to relate the above when deciding which one of the 3 your
putting to work in your next trade. You need to know why and when it is best to look at 1 or more.

(1) Win far more often than you lose with total profit higher than total loss.
EG 80% win rate with losers kept below total win profit.
Day trade to Short term trading often much lower R/R.

(2) Win Far more profit than lose.
EG Less than 50% win rate with aggregate winners far greater than aggregate losers.
Generally Longer Term Position Trading Much higher R/R

(3) A combination of both
EG around 40-60% win rate with greater R/R than (1)

While Ill expand as we go along.

(1) Is ideal in all markets but tends to be used more in markets which are not showing a long term trend in one direction.A flatter type market--like we have had since mid August.

(2) We really cannot be definitively sure when a longer term trend is going to occur.
But we can through T/A be accurate enough to know when we have seen a SIGNIFICANT bottom or SIGNIFICANT Top
We may not get it perfect BUT we can place ourselves in a position of opportunity AND mitigate our risk in the process.
If we get it wrong then no real Harm done---get it right---that's what we are here for.

(3) We can also fairly accurately find INTERMEDIATE tops and Bottoms. Here we can look to capitalise on the best of both worlds.

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So how can we maximise our return even further.
(Again more time will be spent on each as we go).

(1) Position sizing and Risk mitigation.
(2) Frequency
(3) Pyramiding
(4) Leverage
(5) Compounding

So

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And

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But more importantly

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Just take a while to look at some charts.
Understand what has been offered up so far.

Technical analysis will help you answer these questions and these!

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<blockquote data-quote="tech/a" data-source="post: 669970" data-attributes="member: 257">Other than ARB (<a href="http://en.wikipedia.org/wiki/Arbitrage" target="_blank">http://en.wikipedia.org/wiki/Arbitrage</a>) and forgetting exotics.There are only 3 ways I know of to turn a profit trading stock or Futures.Its important to relate the above when deciding which one of the 3 yourputting to work in your next trade. You need to know why and when it is best to look at 1 or more.(1) Win far more often than you lose with total profit higher than total loss.EG 80% win rate with losers kept below total win profit.Day trade to Short term trading often much lower R/R.(2) Win Far more profit than lose.EG Less than 50% win rate with aggregate winners far greater than aggregate losers.Generally Longer Term Position Trading Much higher R/R(3) A combination of bothEG around 40-60% win rate with greater R/R than (1)While Ill expand as we go along.(1) Is ideal in all markets but tends to be used more in markets which are not showing a long term trend in one direction.A flatter type market--like we have had since mid August.(2) We really cannot be definitively sure when a longer term trend is going to occur.But we can through T/A be accurate enough to know when we have seen a SIGNIFICANT bottom or SIGNIFICANT TopWe may not get it perfect BUT we can place ourselves in a position of opportunity AND mitigate our risk in the process.If we get it wrong then no real Harm done---get it right---that&#039;s what we are here for.(3) We can also fairly accurately find INTERMEDIATE tops and Bottoms. Here we can look to capitalise on the best of both worlds.[ATTACH]45156[/ATTACH]So how can we maximise our return even further.(Again more time will be spent on each as we go).(1) Position sizing and Risk mitigation.(2) Frequency(3) Pyramiding(4) Leverage(5) CompoundingSo[ATTACH]45157[/ATTACH]And[ATTACH]45158[/ATTACH]But more importantly[ATTACH]45159[/ATTACH]Just take a while to look at some charts.Understand what has been offered up so far.Technical analysis will help you answer these questions and these![ATTACH]45160[/ATTACH]</blockquote>

[QUOTE="tech/a, post: 669970, member: 257"] Other than ARB ([url]http://en.wikipedia.org/wiki/Arbitrage[/url]) and forgetting exotics. There are only 3 ways I know of to turn a profit trading stock or Futures. Its important to relate the above when deciding which one of the 3 your putting to work in your next trade. You need to know why and when it is best to look at 1 or more. [B](1) Win far more[B] often[/B] than you lose with total profit higher than total loss.[/B] EG 80% win rate with losers kept below total win profit. Day trade to Short term trading often much lower R/R. [B](2) Win Far[B] more[/B] profit than lose.[/B] EG Less than 50% win rate with aggregate winners far greater than aggregate losers. Generally Longer Term Position Trading Much higher R/R [B](3) A combination of both[/B] EG around 40-60% win rate with greater R/R than (1) While Ill expand as we go along. (1) Is ideal in all markets but tends to be used more in markets which are not showing a long term trend in one direction.A flatter type market--like we have had since mid August. (2) We really cannot be definitively sure when a longer term trend is going to occur. But we can through[B][COLOR="blue"] T/A[/COLOR][/B] be accurate enough to know when we have seen a [B]SIGNIFICANT[/B] bottom or [B]SIGNIFICANT[/B] Top We may not get it perfect BUT we can place ourselves in a position of opportunity [B]AND[/B] mitigate our risk in the process. If we get it wrong then no real Harm done---get it right---that's what we are here for. (3) We can also fairly accurately find [B]INTERMEDIATE[/B] tops and Bottoms. Here we can look to capitalise on the best of both worlds. [ATTACH]45156.vB[/ATTACH] So how can we maximise our return even further. (Again more time will be spent on each as we go). [B](1)[/B] Position sizing and Risk mitigation. [B](2)[/B] Frequency [B](3)[/B] Pyramiding [B](4)[/B] Leverage [B](5)[/B] Compounding [B]So[/B] [ATTACH]45157.vB[/ATTACH] [B]And[/B] [ATTACH]45158.vB[/ATTACH] [B]But more importantly[/B] [ATTACH]45159.vB[/ATTACH] [B][COLOR="blue"]Just take a while to look at some charts. Understand what has been offered up so far.[/COLOR][/B] [B]Technical analysis [/B]will help you answer these questions and these! [ATTACH]45160.vB[/ATTACH] [/QUOTE]

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