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Do you struggle to assess your trades and to know whether you are taking the right trades or not? It is challenging as a novice trader to identify blind spots about your own trading. Today I will be going to give you a tip that is not talked about much. However, I believe that it is one of the best tools to improve your day trading.
Often novice traders get confused and stressed out the moment they enter into a trade. They cannot understand why it happens when they enter into the trade, and trade immediately moved against them. Do traders always think whether the market conspiring against them?
As a result, novice traders get stressed out throughout the time when they are in the trade. This shakes their confidence level. They are happy to see that ultimately trade moved in their favor. By the time they entered into the trade and the trade turned green, this period was measured and called the Gain to Pain Ratio.
Formally, it is defined as measure the expected gain or return of an investment and dividing it by the potential pain or drawdown. This will tell you how risky your entries were. I have also explained this in the video below.
You can manually calculate as well in Excel. As a trader, there are many ways you can spend time and improve your day trading rather than wasting your time calculating this measure.
This tool will help you to calculate the gain to pain ratio and guide you on the ways you can improve your entries. You can try a free 7-day trial and get a 50% discount on annual membership after the trial ends. Clicking the link below to access FREE TRIAL of TraderSync
My advice for you is to use this measure as it helps you improve your trading. Also, check out an upcoming workshop on How to Build Day Trading Trade book. The best way to get consistency in your day trading.
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