Some of the sharpest traders on the planet get it right only 4 out of 10 times.
This fact would lead you to believe they must be doing something else to be wealthy trading the markets.
The truth is that trading should be, and is, boring.
If you are looking for a thrill, maybe you should just go visit the local amusement park and buy a ticket for the roller coaster - it will be cheaper for you in the long run.
If you want to trade markets for a living, you will realize that it is boring.
The reason why is that it is so predictable.
You need two things to be a successful day trader or swing trader.
Those two things are the aforementioned pattern recognition system and good money management.
If you have those two things in place, the job at hand is to simply be there to execute what your system tells you to do.
You will win a little, then lose a little then win a little again and hopefully at the end of the week, you will have a little more than you started with.
If you are looking for the holy grail system.
The pattern recognition system that will be right 7 or 8 out of 10 times, you may be in for a sorry surprise.
There is no such thing.
The truth is most traders are only right 3 or 4 times out of 10 This is interesting and the notion of doing everything else the same but reversing your trades.
In other words, if you are wrong 7 times out of 10, why the heck not just carry on exactly as you have, but buy when your system says sell, and sell when it says buy.
Theoretically at least...
your failing 2 out of 10 system should be right 8 times out of 10 If it was only that simple.
But in a way it is.
If you are right only 2 times out of 10 and you lose $100 each time you are wrong, but when you are right you win $500 then you can typically be ahead every 10 trades by $200 That's why it is boring.
It works but it is predictable and that is how you want it.