Prudent Risk Management Is The Only True Edge In TRADING

Is Prudent Risk Management the only true edge in trading?

  • Yes

    Votes: 53 29.9%

  • No

    Votes: 124 70.1%
  • Total voters
    177
Buy1Sell2 said:
All traders have a winning percentage above zero. A trader using PRM can have a winning percentage of less than 10 percent and be profitable. PRM gives you that positive expectancy.
More...

I shall use my previous analogy to dispute your point.

Go to a casino. All gamblers have a winning percentage above zero. Try using PRM to make money. Good luck with that.
 
syniczfx said:
I shall use my previous analogy to dispute your point.

Go to a casino. All gamblers have a winning percentage above zero. Try using PRM to make money. Good luck with that.
More...
Casino games (other than poker) have not similarity to trading. Poker does somewhat because you are playing against other players and they will make mistakes and give you a lopsided reward to risk.
 
Buy1Sell2 said:
Casino games (other than poker) have not similarity to trading. Poker does somewhat because you are playing against other players and they will make mistakes and give you a lopsided reward to risk.
More...

In that case. Try using purely PRM to win in poker. I assure you it is near impossible. There is more to poker (and trading) than just sizing your bets.

If PRM indeed has an edge. The top poker players will simply be the ones whom are able to perform mental arithmetics best.
 
Buy1Sell2 said:
Casino games (other than poker) have not similarity to trading.
More...

I agree, but your POV is proving the opposite. If the markets are random just like casino games and the only advantage blah-blah-blah, then the markets and casino games are all the same. ACCORDING TO YOU!!!!
 
syniczfx said:
In that case. Try using purely PRM to win in poker. I assure you it is near impossible. There is more to poker (and trading) than just sizing your bets.

If PRM indeed has an edge. The top poker players will simply be the ones whom are able to perform mental arithmetics best.
More...
Actually. poker is all about bet sizing including bringing a small percentage of grubstake to table. ---PRM on the other hand is not just about bet sizing. It's also about managing a winning trade etc.
 
Pekelo said:
I agree, but your POV is proving the opposite. If the markets are random just like casino games and the only advantage blah-blah-blah, then the markets and casino games are all the same. ACCORDING TO YOU!!!!
More...
No---you cannot manage a win in a casino game.
 
Let's say that Pekelo and I have the same winning percentage of 40 percent. I like to set my stop at 5 pts ES just as he does. When we win, I take my profit at 6 pts and Pekelo takes his profit at 10 pts. ---Who has the edge?
 
The edge is being able to manage your trades. 2 people both using the same analysis for markets will have drastically different results if one trader employs PRM and the other does not.
 
First, PRM has no clear definition. What is prudent for you isn't for me. And even if there was a definition, you can not draw a hard line that let's say over 3% it isn't prudent, under it it is.

This is just a nice MEANINGLESS slogan...
 
Don't lose more than 2 percent of TLNW on any one trade/idea. When right, let the trade to reap maximum potential. Most traders take profit early and take losses late. They do not have the edge.
 
You must log in or register to reply here.
Back
Top