Advice for kid out of college....CFA or WHAT?

Maverick74 said:
Without finance skills you are not going to properly understand what risk is. Risk is not your stop. LOL. That's very elementary. The reason most people fail at anything in life whether it be sports, a small business or trading is because they are clueless about risk. A stop is not risk. It's an operating cost. There is a big picture you need to understand in this business. If you narrowly focus on the trees (your charts and stops) you will never truly see the forest.
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Please explain your definition of "risk" that I am not seeing. What is risk to you?
 
heavenskrow said:
Please explain your definition of "risk" that I am not seeing. What is risk to you?
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Risk is about evaluating the expected value of a trade measured against the opportunity costs of other uses of the capital being used for that trade accounting for time, discount rate and variance of the returns. Are you maximizing the next marginal dollar of risk given all available resources at your disposal? This is an incredibly exhausting process that goes waaaay beyond setting a stop order. LOL. And yeah, there is math involved.
 
profitlocker said:
@Maverick74

Right. Like risking $1 to make $20 on Google stock. A good trader knows how to differentiate fantasy from reality
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Nope. This is what I'm referring to,. Neither of those numbers you provided are meaningful. Risking $1 to make $20 doesn't answer a single question I have about the trade.
 
I didn't mean it as a random bet. What I meant was that even with a perfect entry, you probably won't get to that $20 target. Not sure what you study, but I simply trade what I see
 
Maverick74 said:
Risk is about evaluating the expected value of a trade measured against the opportunity costs of other uses of the capital being used for that trade accounting for time, discount rate and variance of the returns. Are you maximizing the next marginal dollar of risk given all available resources at your disposal? This is an incredibly exhausting process that goes waaaay beyond setting a stop order. LOL. And yeah, there is math involved.
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Holy moly, yeah that is too intense for me given my resources hahaha. Almost impossible as a retail trader. If you have some excel spreadsheet/formula that can calculate this, I'm all ears.
 
Maverick74 said:
Risk is about evaluating the expected value of a trade measured against the opportunity costs of other uses of the capital being used for that trade accounting for time, discount rate and variance of the returns. Are you maximizing the next marginal dollar of risk given all available resources at your disposal? This is an incredibly exhausting process that goes waaaay beyond setting a stop order. LOL. And yeah, there is math involved.
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I can assure you that I don't need all that gibberish to turn a profit. It's overcomplication in my world. My old man came to the US as an illiterate with a 4th grade education and made millions through persistence and discipline. He doesn't know any of that shit
 
profitlocker said:
I can assure you that I don't need all that gibberish to turn a profit. It's overcomplication in my world. My old man came to the US as an illiterate with a 4th grade education and made millions through persistence and discipline. He doesn't know any of that shit
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Spurious correlation...
 
heavenskrow said:
Holy moly, yeah that is too intense for me given my resources hahaha. Almost impossible as a retail trader. If you have some excel spreadsheet/formula that can calculate this, I'm all ears.
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I wish you the best of luck. Make sure you have a backup plan career wise. Always the best advice I can give to young people.
 
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