Looking For A Holy Grail Trading Strategy? You Can Stop Your Search

One of the toughest aspects of trading in the stock market is living through losing trades.

When you take a loss on a trade, it can be downright painful. Seeing your hard-earned money disappear in a losing trade can induce extreme feelings of anger, fear, or dejection.  

Many of us don’t want to see our account balances go down and don’t want to have those sorts of feelings lurking around, so we try to avoid losing trades at all costs.

What happens for a lot of traders is that if they take a loss on a trade, they think something must be wrong with their approach, and they immediately look for a new trading strategy or approach in order to avoid further losses.

It’s as if a single losing trade means the strategy must be ineffective and should be discarded.

People who react to trades in this way might be essentially searching for a “Holy Grail” trading strategy. They want a trading strategy that never loses.  

In other words, they think there must be some way out there, some secret maybe, to always win in the stock market, and it’s just a matter of figuring it out.

If you are one of those people searching for a Holy Grail trading strategy, you can stop your search.

It’s not because we have a Holy Grail trading strategy for you. It’s because there simply is no such thing. It doesn’t exist. There is no trading strategy in the world that never loses.

The good news, though, is that you don’t need a Holy Grail trading strategy to make solid profits in the stock market. All you really need is some sort of edge that puts the odds in your favor.

One company that helps people do this is Stock Market Guides. They look at the historical price activity of stocks and identify trading opportunities that have a track record of success.

They do this for both stocks and options. Their trade alerts show you how many times that trade setup has occurred in the past for that stock, and what exactly the historical performance is for the trade setup.

Their service offers people a way of ensuring they’re taking trade setups that have a track record of success.

To be clear, they don’t post trade setups that have perfect track records. The reason is that they don’t exist. Every trade setup they share has at least some amount of losses historically.

So if you’re still trying to find a Holy Grail trading strategy that never loses, their service won’t provide that, and you can continue your search. You will likely never find what you’re looking for, though.

If, on the other hand, you can come to terms with the idea that it’s possible to be quite successful in the stock market while also sometimes taking losing trades, then it’s just a matter of making sure you’re trading with an edge.

And what better way to make sure you’re trading with an edge than to look at the performance track record of any trade setup you’re considering. 

 

Image sourced from Shutterstock

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: OpinionGeneralMindful Trader
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!