Trading Psychology. Bounce Back from Trading Losses Part 1 of 2 by Adam Khoo

[@darend8896]

When i was down -$6500 i was to the point of giving up. But i started just waiting and watching. Just being super patience and then i made everything back in 3 weeks. Now i am up $3000 and the market is still down. If i left all my money in mutual funds, i would of lost even more probably down $7500. Nasdaq pulled back last Friday, i didn't even buy on the dip...gonna be patience and watch. Sometimes the best position is when you have no position.

[@dooleyh158]

Adam, this is the BEST explanation of risk management I have ever seen (and I have watched so many videos on KZbin).

[@tpks2542]

Hey Adam, haven't you uploaded this video tons of times? Still I would say it's the most valuable lesson. You give way FOR FREE, what used to be known BY FEW and cost THOUSANDS to learn. I am so privileged to have learnt Van Tharps position sizing/risk management/expectancy from you and without having to dig through 1000s of pages of books or spend thousands of dollars. It's a new generation of young traders mr Khoo, thank you!

[@assilaberkane9038]

same vision as you

[@Matthew-kv5du]

Wow...I have seen alot of his videos, everything he talks about really hit the spot! and he really explains it to the absolute BEST! Thanks alot!!

[@buhlepraisewell8070]

I like the fact that you spend your time sharing facts backed by well done research. I have tried all the tricks I've seen on KZbin since 2015 and all of them never work. But I learned that experience is the best teacher now I have been making 300 dollars a day from a strategy I developed myself.

[@MuhammadNaeem-hf4ok]

Great. Can you please share your experience?

[@globetrotter2736]

I started following your lessons almost a year ago,you've helped me achieve a lot! THANKS

[@dhananjayronge2031]

thank you adam sir for best information on treading psychology

[@PositiveInvesting]

What a great video! This is perfect in time of fear (like currently). Would also love to hear your thoughts on the current health of the market!

[@c.v.lakshumaiah4790]

You are my hero..ADAM Thank you very much

[@omprakashprakash7279]

Hi Adam your explanation is really good. You just revealed what has happened to my trading system right now for me. I have a doubt can reverse my strategy ie. If buy is the strategy can sell it and viseversa. Will it work. If not kindly please upload a video for strategy for a consistent profits. Thanks.

[@duhhawaiian]

Thank you Adam. Best info on trading on the net.

[@KK-yt2pt]

great video. People hear the phrase "x% win rate' and think wow so if i trade 10 times i'll do this.. THEY FORGET THAT THIS ONLY APPLIES TO LARGE NUMBERS. I worked at a casino once. The casino makes money because it runs 24/7. not because it plays 10 hands and then goes home lol

[@tapashchatterjee9479]

EXCELLENT PRESENTATION.......

[@LiquidityProvidersConcepts]

Thank you so much sir i will love to have this software

[@danishibrahim8433]

I am from indonesia i like your videos. Thanks learn it

[@markvincentcenita39]

Thank you sir for this amazing video

[@Rajon0219]

Thanks for your nice and helpful video which help us a lot, can you please share something like technical analysis method videos which help us to learn more about Forex trading. I was a great loser before I found you on KZbin, your video just change my thought and trading. Thanks a lot to you for your all videos.. Just please share another for technical analysis which could be help us like all newbies

[@hagelaji5878]

Thanks a lot. This is what i needed

[@acevahir]

Great explanation, but it is very difficult (at least for non-professionals) to find trades whose probability of hitting +4% before hitting -2% is almost 50%.

[@michaelturner5634]

With the way you teach, any dummy can become a good trader .

[@robertarceo6560]

thanks Adam!

[@hasanz5259]

Mr. Khoo great video, but it makes me wonder: what percentage of your portfolio to you use to trade as opposed to investing? I imagine teachers, ie "gurus", like you use 80%+ for investing and 20% or lower for trading. Is that a fair assumption?

[@motivationforyou8038]

Plz i need an answer. If we must not take small prof and huge losses so if we are day trading like small amounts, we can put the trade tp and sl and like shut down?

[@geronimo6881]

I wish Mr. Khoo can respond to my question (I am kinda hesitate to purchase your course because of this): The chances of going up and down can be 50/50, but how could the winning/losing chances be 50/50 while having an edge set? Don't forget there is a spread too. Also, the broker takes commission and fee form every transaction. After adding up all those costs, how could the winning/losing chances (in terms of the net profit) are still 50/50??? It may become 60/40, and in a long run, I will lose money.

[@bobociwabobociwa4545]

ComSci ok let me explain to u in a simple way. Say to imply a strategy with just 50% of winning edge, that means with this strategy, and for every 100 games, you will definitely win 50 times. The chances of the price going up/down is 50/50, in fact u have to look at it as chances of your trade to be right, can u be right 50/50 with blind guess every 100 trades forever? Let say u dont apply any strategy, and just buy or sell blindly. To know what is ur winning rate, u have to finish 100 trades. So if u get 20% win, then u know this is 20% win rate. What about next 100 blind trades ? Will it be 20% or otherwise? And it goes on for consequent 100 trades. So that is what Adam means by winning edge. His strategy can win 50% for every 100 trades, and this is consistency. Next, u never lose money even with 50% winning edge, dont u forget u have a risk/reward of 1 : 2. That means for 100 trades, u lose only 50, but win 100. You still net off a 50 gain. Regarding the brokerage fee, it is charged based on % of transaction amount. If it is 1% of transaction fee, u only pay 1% of transaction amount to broker, u wont make loss, unless ur trading amount is too little, and the profit is insufficient to cover ur brokerage fee.

[@davitgabrielyan8548]

Hi Adam, thanks for a great video. Is there a trading platform for stocks, that doesn't limit the profit with a must "take profit"?

[@jaikesharwani3953]

Nice video where can i get this simulator?

[@369-x7i]

+10 Knowledge Acquired

[@dpatel2747]

Your video is awesome. Where I get this trading simulator. Pls give me links.

[@Ahsangamer583]

Dear Adam please tell us any strategy that can give us more than 40 percent win rate with 2:1....Please

[@behappyalways7192]

Adam why did u deleted 1hr webinar video? Can I get the link plz..

[@naingsoeoo4205]

Thanks a lot.

[@sertaliozer1]

Adam is there any chance I can download the Trading Simulator?

[@sciggler2880]

Download thinkorswim paper trade

[@MrStoyanG]

I'm also interested on the exel Trading Simulator, where can find it to download?

[@dooleyh158]

Think or Swim - it's free - create an account and then ask them to give you real time quotes. FREE.

[@aadarshchoudhary4321]

Can i trade without any chart analysis. Using ur method.

[@clayton4115]

how many positions do you keep open at any one time?

[@369-x7i]

Hello Adam how can I create a spread sheet like that ?

[@D-Tect.Investigations]

Hi Adam and traders. I am very new to trading so have a novice question. Let say I have a 100k account and I I have a trading system with 2-4 ratio. So in order to get 50% win rate I have to invest the full sum of 100k all the time … like for example should I have like 20 trades of when I invest in each like $5000 and when I hit the sly or sw. then buy another one so I have all the time my full 100k in the market. Appreciate your hep

[@eadou]

What about combining systems ( strategies)

[@conorshalvey8543]

You should do a Q and A

[@binhton1]

That’s right but not clear for me, ex $10.000 capital My risk 1% =$100 per trade, win $200, if wining 5 trades my capital is $11.000. So I have to increase my risk 1.1% ~$110 or always keep 1%~$100?

[@ekouefoli6758]

Hi MR Khoo, do you offer Trade copier services ?

[@walterharris6311]

Yes sir

[@karakulamus]

ADAM IS A GOAT

[@kihiu100]

nice once

[@mahiislam4940]

Thanks

[@lokeshbansal1363]

In 100 trades & 5000$ profit, what about 100 trades brokerage & taxes??

[@Phangmaster]

This makes no sense to me. Surely the chances of something going down $100 is the same as it going up $100 (50/50). So the chance of it going up double, $200 must be less than the chance of it going up just $100. (Although this argument is best thought of in percentage terms not $).

[@AKKSV]

There are 2 rules you play by in this kind of strategy 1. You rely on your Technical / Fundamental analysis and make a decision out of probability, not guarantee. 2. Risk to Reward Ratio is at least 1:2 to make sure you can afford to be wrong 2 out of 3 three times and still break even, from here you can go on with any ratio you want 1:10 or 1:100 etc.. If you want to play a long term game, then be absolutely sure about what you are doing is right. Else you'll end up like me buying bitcoin during December and bag holding, hoping that someday it will rise to the levels where I've bought it.

[@vtv8man]

Phangmaster you are risking 1R to make 2R or better. You also take a high probability trade with the trend going in your favour.

[@geronimo6881]

there is a spread in buying/selling rates, not to mention that the broker takes commission and fee from every transaction... So, the odd is not 50/50 in terms of winning/losing of net profits...

[@effaforkuorichmond9934]

@@geronimo6881 Your trading strategy is what should help you come to that 50-50% win rate.

[@pgsreeraj]

Super

[@kirandesai7890]

nice

[@cts055]

Adam, first of all, I LOVE your videos and your teaching style that makes trading easier to understand. But I have a question reference to "risk to return ratios." In my case, I restrict my losses to 1.5% of the total value of my trading account during each trade. If that 1.5% represents $100, would that be considered my trade risk in your explanation? And my expectation would be to gain a minimum of $100 on each trade (2 out of 3 times using a solid trading strategy). Also, I set my stops to be representative of a maximum 1.5% loss (risk) on the trade. Am I understanding correctly? Thanks.

[@effaforkuorichmond9934]

Always try to away ×2 of the monetary value of your risk. If you risk £100, take £2000 as your wins.

[@LucidGR]

Hey Adam, I really like your videos you have a very good way to explain people who are watching complex concepts But there is something that I disagree and I think is the "half true" if not totally false. You say you have an edge even with 50/50 change because of the stop loss is half of the take profit. This is not the case. Because the distance the price have to "travel" to get to the take profit is double the distance it has to go for the stop loss. So the changes are very different. For example. If I go long to a stock with $100 price setting my stop loss in 90 and my take profit in 120, the price has to go 20 up for me to get my profit but only 10 down to rich the stop loss. The price could get 110 or 115 and then drop to 90. The chances to go 20 up are maybe half of the chances to go 10 down (when we re talking about 50/50 chances). So I disagree. I love your videos but this particular point is not valid for me. I hope I m wrong and you can shed some light on this point of view of mine.

[@geronimo6881]

I hear you. I have the same question too and I wish Mr. Khoo can respond to that... The chances of going up and down can be 50/50, but how could the winning/losing be 50/50 while having an edge set? Don't forget there is a spread too. Also, the broker takes commission and fee for every transaction. After adding up all those factors, how could the winning/losing chances (in terms of the net profit) are still 50/50??? It may become 60/40, and in a long run, I will lose money.

[@saralyana7686]

You can put SL on profit, slidely lower than current movement.so if it drop, you still get the profit, and you can put a new entry..its more safe..

[@ingamemikeotronik1267]

Thats why you have stratagies where you use indicatiors, which give you hints where the market goes.

[@michaelturner5634]

Vasilis Saltis he is a great teacher .

[@jasonalquiza]

That reasoning is valid when not considering any additional information beyond the hypothetical price examples with no further context. However, with a good system, you only take entries that have a good probability to run the amount needed to give the greater than 1:1 win loss ratio. That requires consideration of additional factors besides price targets. Understanding how that works is part of studying a system.

[@banghotang5395]

We cannot make loss $1000 for every trades, even we use formula 1:2 . Try to clear us.