You know when you throw a coin there is a 50 percent chance to any side to appear. that mean from 100 times that we will throw the coin it will fall very close to 50 times for any side - simple statistic.
The coin have two sides.
The forex also have two sides he can go long or short bull or bear.
So theoretical if in any time i will throw a coin and open a position according to what the coin will tell me i should be right with the forex direction 50 percent of the time.
And if any position that i will open will have stop loss 10 pips and take profit 30 pips that mean that from 10 positions i need to be right only in 3 and i will be in profit :
3 times correct * 30 pips = 90 pips
7 times wrong * 10 pips = 70 pips
90 - 70 = 20 pips profit
With 100 trades i need to be correct in 30 and can be wrong in 70!! and still be in 200 pips profit.
What do you think is it logical ?
Alon
The coin have two sides.
The forex also have two sides he can go long or short bull or bear.
So theoretical if in any time i will throw a coin and open a position according to what the coin will tell me i should be right with the forex direction 50 percent of the time.
And if any position that i will open will have stop loss 10 pips and take profit 30 pips that mean that from 10 positions i need to be right only in 3 and i will be in profit :
3 times correct * 30 pips = 90 pips
7 times wrong * 10 pips = 70 pips
90 - 70 = 20 pips profit
With 100 trades i need to be correct in 30 and can be wrong in 70!! and still be in 200 pips profit.
What do you think is it logical ?
Alon