Yes, winning is definitely more fun when it comes to trading. Even though some of the most successful traders have relatively low winning percentages, you should always be looking for ways to win more trades.
While none of the below suggestions are a guarantee, it’ll at least help you go into the right direction to win more trades.
Trade with the Trend
This is an oldie but a goodie. One of the simplest methods for winning more trades is to just trade in the direction of the prevailing trend. This can be done regardless of the time frame you prefer to trade. It can not only help your winning percentage but may also allow you to have larger winning trades. As the old saying goes, the trend is your friend until the end.
Loosen Up Those Stops
Having a solid risk management program is imperative to being successful as a trader. That being said, sometimes traders may use stops that are too tight resulting in premature stop outs. Oftentimes, a trade may go against the trader initially before turning into a good winner. Widening those stops could increase your winning percentage while still managing risk.
Wait for Confirmation
One of the quickest ways to go broke when trading the markets is to try to buy bottoms and sell tops.Rather than trying to be the “smart guy” who called the top or bottom, focus on catching part of the move after it has started. Although you may miss a piece of the move, waiting for confirmation can boost your winning percentage while still allowing you to catch the “meat” of a reversal.
Become Technically Solid
Fundamentals may drive markets, but it is technicals that can provide traders with entry and exit signals. Focusing on technicals will also reinforce the idea that nothing matters but price action. Learn to use technical tools to your advantage and watch your win rate potentially increase significantly.
Buy Strength And Sell Weakness
Look to get long markets that are showing strength and look to sell markets that are showing weakness. Learn to go with the flow and your winning percentage may see a nice increase. See #1.
Enter The Market Using a Sell/Buy Stop
Although you may enter into the market in the midst of a move, looking to buy on a move higher and sell on a move lower can potentially increase the amount of winning trades. This can be accomplished using a buy-stop above price action and a sell-stop below price action.
Avoid Over Trading At All Costs
Over trading is a common problem that can cost you your trading account. Avoid the temptation to trade many markets with many strategies. Find a strategy that works for you that you can stock with. Developing a trading plan and following it will help prevent over trading and will also help ensure that any trades placed are done so with proper justification.
Keep in mind that winning percentage is far from the most important factor when it comes to making money as a trader. Like any other professional, you should consistently try to hone your craft and increase your winners.
