Search results

Why not? Casino games have a negative expectancy for the gamblers. It is akin to trading with a losing strategy. Tell me how does PRM turn this into a positive expectancy? If not, tell me how does PRM turns a losing strategy (Negative edge) into a winning one? Before you turn around and use...

Try using PRM in a casino and tell me you can "create positive expectancy"

I would like to repeat myself. PRM is NOT an edge. A trader that has PRM will survive longer than one whom dont. But it will not deliver a positive expected return. With a negative expectancy, even the most prudent of risk management will still bankrupt you eventually.

I kindly disagree with you on the abovementioned topic. Institutional traders on average are more knowledgable than retail traders. Firstly, they have studied and are generally rather well versed with the drivers of a certain asset class, either in theory, through experience, or both. Secondly...

It is definitely NOT retail vs institutions. The institutions cant be bothered to hunt retail traders money! If anything a more appropriate description would be retail self destruct

I can only speak for retail traders. Based on my acnecdotal accounts, there are a few factors: - Overleverage. Betting the farm on every trade with high leverage. This is rather prominent in short-term orientated traders. A few big losses would wipe out their accounts. - Overtrading. The...

Just to share my input on this topic. IMO prudent risk mangament is essential to any good trader. But it by itself is not an edge. Risk management will definitely help prevent too huge a drawdown or to reduce the volatility of your portfolio. But it will not deliver positive expected return. For...

I somehow have a gut feel that retail FX traders often lose due to the lack of relevant skills and knowledge... As mentioned, due to the very low barrier of entry and very high leverage available, coupled with poor risk management and poor knowledge of the fundamental drivers behind...

Guess in this globalized era, every asset is correlated one way or another...

I would argue on the contrary, that FA is a neccessary to trade well. TA on the other hand is not grounded on much other than the assumption that past prices are indicative of future performance. I think OP have a misconception of FA. It isnt just news releases... FA is like being a...