- What risk management techniques do you find most effective in trading?
How often do you review and adjust your risk management strategy?
share your experiences here and help each other
risk management strategy
- Thread starter eleanorK80
- Start date
Eleanor,
I am a trader in formation
First of all trading successfully imo depends by listening not to asking general questions continuously as you do as an OP.
A good trading depends by two things: an edge and an effective risk management.
In edge you put your strategy including a lot of stuff that can vary from quant strategies to custom indicators, setups, macro, instruments.
Risk management instead is the magic sauce that makes you statistically be much more profitable.
Both are the two legs a trader walks. Veterans are not going to give it so easy away, especially if you look kinda lazyish because there are a lot of information about good methods, one have to put his own hours and efforts and experimenting losing a lot, otherwise will not able to master your emotions and tune with the marketing conditions.
Also trading theory is like going to the university, and when ready trading with real money is like working in an office where you get DAILY performance reviews. In other words should be taken seriously because is a profession that you need to be always updated, new ideas comes from theory and observation, and markets change a lot, short, middle and long term.
Please tell me to start what you know by direct experience about the basis: stop and loss, limit order, position sizing, diversification, take-profits, average losses, risk reward, risk limits, discipline, leverage, journaling
I am a trader in formation
First of all trading successfully imo depends by listening not to asking general questions continuously as you do as an OP.
A good trading depends by two things: an edge and an effective risk management.
In edge you put your strategy including a lot of stuff that can vary from quant strategies to custom indicators, setups, macro, instruments.
Risk management instead is the magic sauce that makes you statistically be much more profitable.
Both are the two legs a trader walks. Veterans are not going to give it so easy away, especially if you look kinda lazyish because there are a lot of information about good methods, one have to put his own hours and efforts and experimenting losing a lot, otherwise will not able to master your emotions and tune with the marketing conditions.
Also trading theory is like going to the university, and when ready trading with real money is like working in an office where you get DAILY performance reviews. In other words should be taken seriously because is a profession that you need to be always updated, new ideas comes from theory and observation, and markets change a lot, short, middle and long term.
Please tell me to start what you know by direct experience about the basis: stop and loss, limit order, position sizing, diversification, take-profits, average losses, risk reward, risk limits, discipline, leverage, journaling
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- What risk management techniques do you find most effective in trading?
How often do you review and adjust your risk management strategy?
share your experiences here and help each other
Took me a decade to get it down right, it is my edge.
Would you share to the world your edge?
She did. Starts lots of threads and never returns.
%%
MOST would not + for good reason
BUT some that make trade-investment profits+ have done business all thier life may or may not share some pattern fragments......................................................................
SAY you like to study SPY+ QQQ trends a LOT + a lot of charts/all data;
risk management could include take some profits even though its very likely to do better.
Do some cash market/ losses are less.
Wall Street Wisdom with Samson CoSlow; dont do money management like Livermore, unless you want to blow up 4 times \bankruptcies + then blow his own brains out.
OR, ARGT, market exit\ just a bit more loss than the others, good thing never added to start position.
Like IBD says \ exit the worst in your AUM. Dave Ramsey helps.
- What risk management techniques do you find most effective in trading? what does risk management mean?
How often do you review and adjust your risk management strategy? I have no clue on earth what risk management means.
share your experiences here and help each other
Hello eleanorK80,
See in red
Full Disclaimer : I am currently a Winning Money Maker so far of about -$12,000 on the fiscal year of 2023. I am an ES Futures Master Money Maker. I am not a damn Trader, just a Money Maker of the ES Futures Market. I use to a be a Loser of the ES futures market. Once again with strong emphasis, I am NOT a trader.
%%
Sometimes get back in ;
+ do it again, depending .
Repeating pattern, i never use a stop on cash metals business, dont need one there.
And when some asked Jim Cramer ''are you a trader or investor'' He never answered the question=good answer with a hint.
Sometimes get back in ;
+ do it again, depending .
Repeating pattern, i never use a stop on cash metals business, dont need one there.
And when some asked Jim Cramer ''are you a trader or investor'' He never answered the question=good answer with a hint.
%%
MOST would not + for good reason
BUT some that make trade-investment profits+ have done business all thier life may or may not share some pattern fragments......................................................................
SAY you like to study SPY+ QQQ trends a LOT + a lot of charts/all data;
risk management could include take some profits even though its very likely to do better.
Do some cash market/ losses are less.
Wall Street Wisdom with Samson CoSlow; dont do money management like Livermore, unless you want to blow up 4 times \bankruptcies + then blow his own brains out.
OR, ARGT, market exit\ just a bit more loss than the others, good thing never added to start position.
Like IBD says \ exit the worst in your AUM. Dave Ramsey helps.
I have developed over 40 patterns of entries, exits and most important of when to hedge open profits. I only trade very long term futures and forex on some 60+ multiple markets.
Trading some futures there are limits as volume and open interest are light and what I use for hedges.
And problem with forum, you just don't know who you are chatting.