Which column(s) ?
Risk Management is the answer
- Thread starter Wide Tailz
- Start date
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I ''get'' a fund or a mutual fund could + would have to trade invest much different from me\ or buying SPY,QQQ, VTWO..... every month[12 months X 36 years] could make millions for any investor.
But the latter is not averaging down, its averaging every month+ big difference.
Even adding just 4 times could make sense in a good uptrend;
2022 SPY benchmark has had no good uptrends , just bear rallies.
4 times add\ puts biggest risk when it turns.
About the dumbest joke i ever saw was Larry Mint Hite noting the guy that prayed + did not play the lotto/LOL . He then disclosed something like lotto is a stupid tax on people that cant do math;
But said the point was God said '' had to be in to win'' Good book =The Rule by Larry Hite
People should not be allowed to post charts like this. It is all compounding bullshit which is theoretical.
TrAndy, did you do this? Have you ever seen anyone do this? No? Then pipe down friend and know that the chart you posted in IMPOSSIBLE. Kthanksbye.
Control the down side, and the up side will take care of itself!
If you keep hitting the rocks, it might not be a good day to go for a swim......
If you keep hitting the rocks, it might not be a good day to go for a swim......
The market is a superlative enemy much larger and stronger than you, and your only hope in getting out alive, or perhaps with a little more than you put in, is to get out when things are not going well!
There is no point in entering a game you are sure to lose, so don't do it unless you know what you're doing. If you have to ask, you don't know what you are doing.
I don't mean to demoralize you, it will happen soon on its own unless you study the only realities available to you, the small trader on a retail console.
1. Money is created or destroyed based on faith, or its opposite which is fear. Note that fear of missing out always results in loss, unless you have faith in your exits.
2. Money is good, and so is business. No one would cooperate for very long without it. Therefore go into business serving the market's needs. Right now it needs price discovery in a major way. Everyone is beginning to look down.
3. Trading is nothing more than accumulating inventory on the cheap so you can provide it later when people didn't realize they needed it. Sounds basic, but chasing price is the opposite of stepping in at the bottom to give the wounded a way out.
4. Therefore enter the market knowing what you are doing, and knowing who is going to need to buy your positions later. If you can not do this, it is only a matter of time before your "edge" is found out and obliterated......
There is no point in entering a game you are sure to lose, so don't do it unless you know what you're doing. If you have to ask, you don't know what you are doing.
I don't mean to demoralize you, it will happen soon on its own unless you study the only realities available to you, the small trader on a retail console.
1. Money is created or destroyed based on faith, or its opposite which is fear. Note that fear of missing out always results in loss, unless you have faith in your exits.
2. Money is good, and so is business. No one would cooperate for very long without it. Therefore go into business serving the market's needs. Right now it needs price discovery in a major way. Everyone is beginning to look down.
3. Trading is nothing more than accumulating inventory on the cheap so you can provide it later when people didn't realize they needed it. Sounds basic, but chasing price is the opposite of stepping in at the bottom to give the wounded a way out.
4. Therefore enter the market knowing what you are doing, and knowing who is going to need to buy your positions later. If you can not do this, it is only a matter of time before your "edge" is found out and obliterated......
Of course, it is! Because it helps traders to minimise potential losses and protect their capital. By implementing risk management strategies, traders can control their exposure to risk and make more informed, rational decisions about their trades.
what you think there is any difference between risk and money management ?
I know you're just an AI chat bot, but for the humanz in here:
1. Risk management is like taking a position on a hill behind rocks, with many angles to escape down the back side, before opening fire
2. Money management is making sure you will have bullets left after the first shot is fired, in case you do not hit the bear the first time
1. Risk management is like taking a position on a hill behind rocks, with many angles to escape down the back side, before opening fire
2. Money management is making sure you will have bullets left after the first shot is fired, in case you do not hit the bear the first time