There is often an opinion of players and traders of various markets that, that profit is never small, what should be taken from the market then, what is at the moment, do not be greedy, etc.. Some even build sound theories, for example, earn half a percent every day and stop there. Or a week by some percentage, etc.. In total, a lot should be accumulated per year — trebling, tenfold deposit. But everything seems to be so simple — you take a day by percentage and dump from the market, no risks :)
In my opinion, novice players should be warned against such a dangerous policy, because if you limit yourself to pieces of the piece provided by the market at the moment, you can still, then protect yourself from the fact that the next time the market will select a piece instead of a piece, it is forbidden. And all carefully accumulated wealth will be lost in the moment, after which again it will be necessary to roll the stone uphill step by step so that close to the top it again fell down — this effect, as everyone knows, called Sisyphus labor.
Let's look at an example. Everyone knows that there is no such thing as only profitable trades., none of the best can do without losses trader peace. Also, if the trader does not recognize mechanical trading systems, this does not mean that he himself does not play according to the system — the system is in his head, developed by previous trading experience, although not tested, but still the system. Who doesn't have such a system, he just does not survive in the markets.
So here, if a, for example, consider day traders, of whom the majority, then their profit factor, usually does not exceed 1,5, but really 1,3. Who does not know what a profit factor is, this is the total profit for the system divided by the total loss. I.e, for example, if in a year a trader generally had 6000 dollars of profit and 4000 losses, then he earned 2000 Dollars, and its profit factor was 6000/4000 = 1.5. This is fine. These are indicators of a normal medium short-term system..
I.e, in the above example, we have the case when the system is used in full, as it is, all profits are taken and all losses incurred. Now let's imagine, that some trader, decided to outwit the market and the system and decided to take the minimum profit as soon as it appears. Naturally, in this case, it won't work full 6000 system dollars as it will not wait for the growth of profits in positions, but will close earlier. So here, if he even takes profit in 1,5 times less than it is kindly provided by the system, then as a result, the total profit will be 6000 / 1.5 = 4000 dollars. At the same time, he will not be able to reduce losses in the same way and they will remain as they were. 4000 Dollars. And in the end it turns out that as a result “improvements” system he is nothing, eventually, didn't work, since it worked 4000 and lost the same: 4000-4000=0. And if he were even less greedy and took profit even less than kindly provided by the system, for example, in 2 times or more, then as a result I would gradually drain my account.
Internal psychology of this phenomenon comes from ignorance of the parameters of your traded system. For example, introduce, that the trader still has a very fantastically profitable system with a profit factor 3,0, that is, profit for a period of time 7500 Dollars, and losses 2500. In this case, certainly, can be taken in 2 times less than the market potentially gives — we get 7500/2 = 3750 dollars which is more than 2500 dollars in loss — all the same, the trader will still win, only a reasonable question arises, is it necessary to do this?
That is, the point is that you need to take everything that the SYSTEM gives in full, but for this you need to know what she can really give, since she will always take her own sometime and if you do not take everything, what the system gives, then, then, what will she take later, will exceed that, what did you get from her. :)
