Newsletters and trading services are notorious for promising things they can not deliver. I am not here to decieve you or anyone else. These claims are absolutely absurd. Can I promise a 100K return in an hour? Sure, but the fineprint would read something to this effect:
Based on an houry average profit when capital utilization is maxed and that utilization level exceeds 10 million dollars in trade capital. Also, the return is subject to adjustment due to abnormal market behavior and market volatility.
not
The markets define almost every aspect and return of a trade. Entry, averaging, exiting, deleveraging, returns, etc etc. The market, and its opportunities and returns fluctuate under varying conditions. This makes it extremely hard to nail down an absolute level of return you should expect. Averaging this return over multiple years does absolutely no justice either, for the variances can fluctuate radically.
You will not make 1000% on your capital in a year, not here, not anywhere, not consistently. If you double, triple, or make huge gains in your account utilizing most trading techniques, you have actually increased your odds of giving all these profits back into the market, plus some. The gains did nothing but reinforce bad trading habits. You may not see them as "bad" habits yet, but you will, eventually.
My objective is to keep you from destroying your trade capital and to make you a reasonable profit consistently within the market. Every quoted percentage, ratio, return, etc at various trade services can be altered to appear favorable to the prospective client. They will not be outright lies, but the fineprint always holds the catch phrase.
Percentage win to loss ratio...
If I execute a trade, average in 10 times, and eventually exit at profit, is this 1 trade? 11 trades? I returned a profit on the overall cost average, but 5 of the contracts actually lost value. Is this a 50:50 win/loss ratio? How do you want to percieve it? Looking at this as one "position", it was a gain. When looking at it in this perspective, can one trade 100% of their positions for a gain? Absolutely. Professional money always have, at least, a portion of the position open. Do we consider the trade closed when all shares are liquidated or covered? If so, they never have a winning trade to losing trade ratio, for they never fully close a trade!
Point is: I can dance around numbers, ratios, percentages and returns all day long. In the end, it would leave you confused, and I could pronunciate the points I want you to remember.
The market controls what it gives out, you control how you manage your capital to exploit it. Two entirely different entities, most often blurred into one with the confusion present in market educational material.
