The Secret Formula for Successful Trading: Insights from Mr. Breakouts
Are you looking for a secret formula to become a successful trader?
Look no further than the advice of Tomas Nesnidal, aka Mr. Breakouts.
In a recent episode of the Breakout Trading Answered show, Tomas shared the simple yet effective trading strategies that his former CIA agent-turned-trader mentor, Mike, taught him.
One of the key takeaways from the episode was the importance of simplifying trading strategies by focusing on one entry and working on exit strategies.
Tomas also introduced a table of reward profit-loss ratio versus win percentage that Mike taught him, which is essential for successful trading.
The table shows that even with a 40% win percentage, traders can still make money if their profit target is twice the amount of their stop loss.
Tomas emphasized the importance of being reasonable and considering volatility when setting profit targets. He advises traders to focus on the average win versus average loss ratio and use this as a safety belt to ensure that their strategies can withstand fluctuations in the market.
In conclusion, Mr. Breakouts’ advice is to simplify your trading strategies and focus on the basics to achieve consistent profitability.
Don’t underestimate the fundamentals and always consider the risk-reward ratio when entering trades.
And if you’re looking for more resources, Tomas recommends reading his book and Van Tharp’s “Trade Your Way to Financial Freedom” to gain a better understanding of the timeless principles of trading.
What are you waiting for? Start simplifying your trading strategies and see the results for yourself!
Here’s an excerpts of the topics discussed on the show:
- Expectancy and the importance of simplicity,
- Direction and Volatility in Breakout Trading,
- Trading with Volatility,
- Flipping the Coin and Exit Strategies,
- Random walk and why the markets are unpredictable,
- The importance of fundamentals,
- And much more.
Don’t miss out the exciting content we have in store for you. Hit the play button and watch our latest episode.
03:21 Markets are unpredictable
07:47 Reward profit-loss ratio versus win percentage
12:15 Expectancy and the importance of simplicity
16:12 Flipping the Coin and Exit Strategies
18:43 Trading with Volatility
20:44 Direction and Volatility in Breakout Trading
27:01 Simplicity in Trading
35:02 Importance of Fundamentals
Don’t forget to subscribe to the BTA YouTube channel for all the latest updates and trading content:
Released: March 22, 2023