Dear Trader,
I've seen traders do this over and over again and it pains me every time.
They put on a trade and it turns into a loser. And then they do it again. And again a loser.
Who knows? Maybe that is you.
So then what happens, assuming they don't get discouraged and just stop trading, is they then jump to another technique or method because clearly that one didn't work. And the cycle starts all over again.
I've seen traders go through this cycle over and over again.
But the problem is not the system. The system will work over the long run. But you may get chopped up in the meantime and that will weigh on your psychology.
What if I told you there was a way to cut out a lot of those little losers and still use that method you are using?
Sound interesting?
Of course it does.
What I use and teach to my students is a technique that is an overlay on top of all other systems. You can think of it as a meta technique for trading methods and techniques.
It all has to do with a concept called Expected Value.
Every trade has an Expected Value but nobody figures out what it is. So that means that nearly all investors, including pro investors, ignore this critical factor. And so they fall into the vicious cycle from above.
But what I do is calculate the Expected Value of all my trades before I do them. What that does is eliminate trades that have a negative Expected Value or a very low Expected Value. Of course, this doesn't eliminate all my losing trades but it sharply reduces them particularly the paper cuts. It increases my winning percentage of trades which is important to make more money and to help keep a positive psychology.
I just uploaded a new lesson to the WealthbuilderInsider.com site where I revealed exactly how I use Expected Value and I even included a spread sheet so you don't even have to do any math!
Click here to learn more about how to sign up for the Wealthbuilder Insider membership program and transform your trading using Expected Value.
Good expected value trading,
Courtney Smith
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