They might have a very effective and profitable strategy

This is called'chasing performance'

and is a trap that normally leads to more

losses

The trader waits to trade until there’s a

win streak

The next series of trades are all winners

Most of us have been there and done that

Tweaking or changing the rules so that the losses would have

been winners

Any rule that a trader comes up with is bound to have

incidents where it just isn't going to work

Do you think governments are

going to allow us to mint money?

More likely we'll be paying you a visit

while you're breaking rocks in Leavenworth!

Trading has inherent risk

Curve Fitting

As soon as you change the rule, you will lose

again while the original rule would have won

The typical healthy growing equity curve

will go two steps forward one step back

The performance chaser waits to trade until he

has just seen two steps forward occur

Constantly on the wrong side of the

curve

This is completelyavoidable and yet it

still happens too often

They give the power of the 'odds' the time it

needs to work

It’s Simple!

It is one of the many strategies successful traders use to remind themselves how profits

are made in trading

What good is having an edge if you don’t let

it play out?

The best strategies will still lose money

Curve fitting just keeps the losses coming

What does perfect mean?

Does it mean being able to execute trades

perfectly?

SurrenderAccept

Focus on what it really takes

Focus on beinglike the casino

Like any business, trading is a

numbers game

Establish a statistical advantage and then go about taking the trades

Losing traders focus on avoiding losing

trades

This will give you the ability to stay in the

game and keep taking the trades

Powerof

Compounding