Prudent Risk Management Is The Only True Edge In TRADING
- Thread starter Buy1Sell2
- Start date
In your posting describing your father, you have basically made the point that PRM is the only edge in trading. The man traded a 100 percent winning strategy and made money, however did not maximimize these gains because he did not observe PRM. ---ie he held through crashes etc. ---
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Are you the village idiot here? Please tell me you're joking?
INCORRECT!!!!!!!!!!INCORRECT!!!!!!!!INCORRECT!!!!!!!!!!!!!INCORRECT!!!!!!!!!!!!!!INCORRECT!!!!!!!!!!! How can you say "all are known"? Your IQ level keeps dropping with every absolute you say!
Yes...he held through crashes, but if he didn't hold through the crashes (by selling at the top) he would need a good ENTRY method to get back in at the bottom of the crash...ie edge in entry. So, to maximize returns the entry would still be very important in this example. Thank you for your time!
Money management is not an edge. It is crucial to survival and profitability, but it is not sufficient. You need BOTH a coherent trading method AND good risk management for any chance of long-term survival and possible prosperity.
The fact that more than 50 pages are filled with this nonsense shows the quality of the "best trading website". But it is in line with the self declared gurus like Surf.
As apparently over 90% of all traders lose money, this amount of nonsense is just a confirmation that over 90% are losers.
I even gave up to discuss about it.
It's unlikely as the 95 percent that you describe would have money management skills that were deficient. --The amount of money lost and/or speed would decrease it would seem, but not the ratio of winners.