Better to Be Wrong Than Miss Out, or Better to Miss Out Than Be Wrong?

Faced with a trading opportunity, would you rather make a mistake than miss it, or would you rather miss it than make a mistake?

Many people think that if my method has a high winning rate, then you should choose the first method, and don’t miss it if you make a mistake. More trading opportunities mean more profits, but if you really do this, your winning rate will definitely be lowered. Generally speaking, the profit-loss ratio of a system with a higher winning rate is inherently lower. If the winning rate is reduced at this time, it may even cause your system to have negative expectations. Soswing trading systemIt’s best to adopt the you-miss-don’t-do-wrong principle. Is the second option wrong? No, I think the trend tracking system should adopt the principle of zero mistakes and no mistakes, because the trend tracking system has relatively few opportunities to open positions. It is a model with a large profit and loss ratio and a low winning rate. After many trials and errors, the trend will eventually emerge.

General profits can cover multiple stop losses during shocks. At this time, if the trend is missed due to artificial screening opportunities, this will be detrimental to the market.trend following systemis unacceptable. You see, many of these trading concepts we often hear are opposite and contradictory, but they are all right. They just apply to different scenarios, so the one that suits you is the best.

If the market does not prove you are right, then you are wrong. If the market does not prove you wrong, then you are right. These are two completely opposite trading concepts. So which one is right? After placing an order, the market does not develop according to our expectations, but it also does not reach our stop loss. Will you exit early at this time? According to the first trading concept, if I only hold the correct position, if it does not go as expected and does not prove that I am right, then I am wrong and need to cut it off. As for the second trading concept, trading is to use an acceptable risk, stay in the market as long as possible, and wait for the market to break out, because no one knows when and in what form the market will come out. Since the stop loss is not reached and I am not proven wrong, then I am right and I should hold it. Which concept do you support? I think both of them are actually reasonable, but they are suitable for different systems, the one for band and the one for short-term.

We must insist on only holding correct positions. If we open a position and see that the trend does not meet expectations, we will cut it off immediately. Later, we find that it has come out again, and we can enter the market again. As for those who make a trend following system, if you have already made a certain profit, then you should let the profits run. As long as the trend does not reverse and it does not prove that you are wrong, then you are right. You should insist on holding and move the trailing stop to the place that proves the trend reversal.