Risk Management is the answer

I am my own biggest risk. By expecting to fail, I induce it by focusing on its possibility, not the main trend which fuels the life-changing phat tailz that take you from $100 to the stratosphere, if you only have faith!

To quote "old turkey" - it's a bull market, you know.....
 
volpri said:
The reason scalping often requieres a wider PA stop loss as opposed to a tight monetary SL is because no one can actually say where the market will go. We are dealing with probabilities and possibilities in scalping. There are too many variables..some known.. and some unknowable. Therefore, certainty is fleeting. A wider PA SL gives one's trades a "chance" of working. A tight one will bleed your account to death.

So why even have a SL? Well you have to protect yourself from an even or a move you thought was improbable but became reality.
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First, thanks for sharing Volpri. I've learned a considerable lot from you! And with you typically aiming for 1 to 8 points on ES, how many points is your SL when scalping ES?
 
Wide Tailz said:
Guard your money, and develop your edge based on low risk ideas.

Then add to positions when they show profits, not losses.

At all times be ready to get out. The freedom to exit at any time is the speculator's main advantage, especially now that commissions are zero.

Because the downside is the only thing you can really control....

We all know it takes 33% gain to make up for a 25% loss, or 100 for 50, and so on.

Therefore guard your money at all times!

For those who know trading is ultimately psychological.
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Always be ready to exit. Control the downside, because trading is psychological.
 
There is an emotion that goes along with the possibility of loss: Fear.

And greed is just fear of missing out.

Your brain gets much smaller when you are afraid. Basically the lizard parts take control and all the careful analysis beforehand gets temporarily forgotten.

Fighters get over this by getting beaten up in sparring or real fights / combat. But the best way to train is with someone who is not going to kill you, so you can develop muscle memory through drills.

In trading this is simply the process of walking through successful trades beforehand, like a psychological backtest. How should the trade look? When is the stock acting right?

My favorite book is How to Trade in Stocks by Jesse Livermore, who talks very clearly about what a stock does when you should hold it.

If you don't know what it should do when money is falling from the sky, into your sack, you might be afraid of success and cut your winnerz.

I'm speaking from experience. :D
 
The less I think about risk management and money management, the prettier my equity curve looks and closer it gets to straight 45 degrees.

Risk management and money management is bullshit.
 
Congrats. Let me know if you need a pilot for your Gulfstream (although, judging by the performance of leasing company FTAI, the days of owning our wingz may be over)
 
Overnight said:
After all this time, it is time to admit that Jesus is the answer...

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Since you're so angry, this is true. He cured the same issue with me, 25+ years ago. I may have been hosting demons, but they were so subtle I couldn't tell. All I could feel was my anger. And after I asked the Lord for forgiveness, and accpeted His gift, life changed for the better (not without some chastening along the way).
 
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