Two philosophies with big implications
Less number of trades is goodMore number of trades is good
Some "believe " less number of trades is good. The approach requires very careful stock selection, wider stops, and more concentrated positions and willingness to have drawdowns or willingness to give back lots of open profits.
Some "believe" more and frequent trades with smaller profit potential is good. The approach requires willingness to do hundreds of rades. Requires less risk per trade. Your returns are not dependent on few trades. Drawdowns are small. You can make money irrespective of market conditions as the anomaly you are exploiting is on smaller time frame.
Confusion between the two approach is common for beginner traders.
1 comment:
Slowing down my trading to daily candles was the answer to all of my trading problems.
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