So why can't everyone make 100%
If you can easily develop a system that makes 121R in a YEAR, then why don't most people make 100% each year?
The answer to that question is simple. PEOPLE MAKE LOTS OF MISTAKES. I define a mistake as not following your rules and if you don't have a business plan or written trading rules then everything is a mistake.
So here is how it works. Let say each mistake is worth 2R. Suppose you make 1 mistake each week. In a years time, you make 104R worth of mistakes. If your system only makes 121R - then because of mistakes you only make 17R. And most people, during a large drawdown, usually abandon the system totally and think they cannot trade it.
With that in mind, my whole Peak Performance Program is designed to teach people how to avoid repeating mistakes. And if you keep making the SAME mistakes, then that's what I call self sabotage. But that's another story.
Van









Comments
Who wouldn't want 100% gain over a year (or less)? The key is discipline. I'm new at the investing world and have starting with your book "Trade Your way to Financial Freedom", great book btw. So much to learn, thank you for sharing!
Posted by: David Anderson | July 10, 2006 05:32 AM
Keep up the great work on your blog. Best wishes WaltDe
Posted by: WaltDe | September 1, 2006 02:40 AM