All traders have both wins and losses regardless of their strategy and system. Much like in sports traders don’t succeed on every trade just like baseball players don’t hit every pitch and basketball players don’t sink every basket.

Most studies show that 90% of traders and investors don’t make money over the long-term. The majority of traders, even if they get lucky and profitable early just give back those gains over time. Even buy and hold investors can become shaken out of their long-term plans to not sell when a vicious bear market takes back years of gains. 80% of traders also tend to just quit altogether during their first two years of learning lessons the hard way. Most traders don’t really fail they just quit too early and never even to the work required to even try to be successful.

In technical analysis the triple top chart pattern can be a possible signal for a reversal lower in price.

The doji star is a neutral signal that occurs when a single candle has opening and closing prices that are close to the same.

Paul Tudor Jones is one of the greatest traders and money managers of his generation. He has had no losing years in his primary fund for decades. He was able to more than double his capital under management during the Black Monday Crash of 1987 while others faced huge drawdowns and account blow ups.

Position Sizing isn’t random. It’s calculated based on ACCOUNT RISK (AR) and TRADE RISK (TR). A formula controls risk so we know exactly how many stocks, futures contracts, or forex lots to buy on a given trade. There are many ways to calculate position size. Here are a few simple ones: