RN
Lol. When are you going to start automating you old codger?
Prudent Risk Management Is The Only True Edge In TRADING
- Thread starter Buy1Sell2
- Start date
Lol. When are you going to start automating you old codger?
Likely never
1.) I ain't smart enough
2.) Doubtful I would trust it
3.) I actually love trading / watching the charts / reading story as it unfolds
RN
Last edited:
Yes. Entries are all fine and dandy but they are not an edge. The edge is how you manage those entries, indeed how you allocate your resources. Trade from bias of fear? Absolutely. The specifics of prudent risk management are the edge and I don't divulge those specifics other than the 2 percent of TLNW rule.. Each person has to define their own specifics for their edge. Most foiks will not establish those specifics due to "need to be right" "Gambler mentality" " Narcissistic personality disorder" or perhaps just plain laziness. It's hard for people to understand that successful trading is about prudent risk management and that's all it's about. It's counterintuitive to human nature.--Just so everyone knows, I day trade nearly every day.--Izzy
Funny you mention that. One of my algos developed a mind of its own and actually makes some money. Not sure why, as I pay people to code them. I actually trade it with small size just for shits and giggles. Very puzzling
Just from what I have personally seen from new clients and trading house acquaintances over the years - position management is one of those trading axioms that gets platitudes and lip service, but is rarely deployed in a systematic and uniform practice by individual traders. Just sayin.
Seems like most guys spend 95% + of their energy on the entry signal and managing the position is a weak afterthought. Which is a shame, really. Just my 2 cents.
Seems like most guys spend 95% + of their energy on the entry signal and managing the position is a weak afterthought. Which is a shame, really. Just my 2 cents.
EXACTLY!
A GOOD ENTRY REDUCES RISK
Any real trader knows this and it is the hardest part of the success formula. Managing trades (stops and targets) is the easier part
Any real trader knows this and it is the hardest part of the success formula. Managing trades (stops and targets) is the easier part
FALSE (IT IS EASY, BUT IT IS NOT EASIER THAN ENTRIES)
I said easier. Not that easy though. Takes time to master. Entry refinement took me much longer
Entries are very easy to spot and learn. Anyone can do it. Typically within the first few days of looking at charts. Risk management is the part that most cannot handle. It's easy as well, but most never embrace. Traders do not lose money due to bad entries, rather they lose money because when they are wrong, they won't admit it.---and when they are right, they won't exploit it. It's that simple.