InvestorQ : Can I really rely on the broker when they talk of success percentages?
Tisha Malhotra made post

Can I really rely on the broker when they talk of success percentages?

seema Upadhyaya answered.
3 years ago

You have no reason to doubt them. They surely must be having their research and their internal processes to reach the conclusion. However, there is a practical side to it, which y you must contend with. That is a reality of any success percent sheet put out by a broker or a trader. There could be a variety of reasons. The lack of liquidity may be making it impossible for you to execute the transaction. Market temperament may be different. There may be fear or greed in the market. The statutory and brokerage costs may be shaving off more returns than you had imagined. Of course, once you have two stop losses triggered in your first two trades, enticing a trader to put more money is almost impossible. Try breaking that mental barrier, it is different when you are giving calls on a computer and when you are seeing your own money in action.

So what is the way out? Do not overtly focus on success percentage. Rather focus on portfolio returns. Returns are what you actually earn. Most importantly, ensure that you start the entire evaluation with a finite capital. Nobody trades with a blank cheque. What is more important in this entire game is that you cut your losses fast. When in doubt, it makes more sense to sit in the sidelines and re-enter when there is greater clarity in the market. Don’t try to hold on hope and of course, don’t try to average. But above all, hold on to your winning positions. Make your winners count. These winners also have to make up for your losers.