Hi Edward, I have just registered with FSF, having visited this website on numerous occasions in the past for useful tips of successful trading. I would like to congratulate you on providing an excellent service for new aspiring amateur traders like myself!
When I think of all the people out there charging extortionate sums of money for providing a 'trading signals' service or for trading strategy, most of which do not provide consistent profitability, it is really refreshing to know that your website provides good honest trading strategies free of charge!
I'm afraid at this stage I don't have a strategy to share with other members as I am still learning myself, but one thing did occur to me as to why only a small percentage of traders are successful, and it is a thought I would like to share with other members.
In theory, setting aside for a moment fundamental and technical analysis, there is a 50/50 probability of winning a trade. After all a particular market can only go up or down, so you might expect 50% of traders to be successful and the other 50% not. And yet the consensus is that most of us are unsuccessful.
Surely it can only be down to poor money management. Taking profits too soon and not cutting losses quickly enough, when we should be doing the reverse.
I do feel money management is the most understated aspect of trading. I have read several books by expert traders and they all say without exception that you should always aim for a profit/risk ratio of at least 3:1, and never stake more than 5% of your trading strategy on any particular trade. Using this ratio you can afford to be wrong 60% of the time and still make a profit long-term.
This I feel is something we should all be aware of.
Charles