You must love losing money 💸 | Tackle Trading

≈ Good trading is not about being right. ≈

So you want FAT returns over your capital. Greasy and juicy returns.

And for that, you want to deploy just the right amount of capital. Rounded. Precise. Preferably small. Tiny.

And you want it fast. ASAP. “I want it all and I want it now”, like Freddie.

Who doesn’t?

Sorry to put the finger on the vinyl record and stop the music: that’s just not possible.

Fat returns are, by mere application of logic, rare events.

You will catch those rare events, but only if you try. And fail.

try › fail
try › fail
try › fail
try › slim ROI
try › fail
try › slim ROI
try › fail
try › fail
try › fail
try › FAT ROI

Curtis Faith wrote in his book “The Way of The Turtle”:

“Table 4–1 shows the cocoa trades one would have encountered by trading breakouts from April 1998 until the trade with the large trend occurred. Note that there are 17 losing trades in a row in the cocoa market before a very sizable winning trade that started in November 1998.”

Don’t be fooled: this was all part of his system. Nothing random to be seen here. Begin by comparing the size of the losers to that of the winners.

If you have PANIC of losing money, you will never trade. If you never trade, you will never get the FAT ROIs. That’s a mere application of logic.

In a way, you must love losing money.

Chart of the Day: Table 4–1

Table 4–1 is today’s chart of the day. Curtis was one of the Turtles from the first class. Let’s learn from the man himself. Seventeen losses in a row one would’ve encountered until BAM! The fat and heavy ROIs on four of twenty-eight trades, beginning seven months later.

Video of the Day: Pre-Defining Risk

Coach Noah Davidson explains the importance of defining risk before placing any orders, even more during high volatile markets.

Originally published at tackletrading.com on December 14, 2018.