The Perfect Trade

What should we aim for?

Do you need to be perfect? Does every trade have to be a winner?

Your life to date

Take a look at your test and exam results from school. How often did you score 100%? If you are exceptionally good at your subject then this will happen but for most of the population this rarely happens. We strive for A's - whatever they may be. That might be over 70 or 80 or 90%. Sometimes a pass is all that we can hope for. Depending on where and what is being examined a pass mark can be as low as 40%. I hope that doesn't apply to brain surgery.

The Perfect Long 10 Minute Trade

In the perfect long trade you enter at the low tick of the move on a limit order and exit on the high tick at your target, also using a limit order. There are so many things that have to be right to pull off the 100% perfect trade. In order to be filled on that low tick limit order you need to put your order in well ahead of time so that you're at the front of the queue. The same with the exit order.

The full range of the move has to be measured with perfection - to the tick. If you have a time stop then your estimate of time to target must be highly accurate.

The perfect trade does not take any heat - the trade does not even 1 tick against your position.

The perfect trade moves quickly in a favorable direction and does not waiver on its way to your target.

How many times have you pulled off the perfect trade? How many times in your trading career do you expect to pull off the perfect trade?

I have never pulled off a perfect trade and I never expect to. So I'm not going to waste my time trying to chase perfection. I've decided to leave perfection to those studying brain surgery.