Who's money? My kid's inheritance.
Fortunately, unlike you, I don't need to report quarter PNL or make disclosure to the SEC.
Risk/Reward Ratio
- Thread starter Goldlover
- Start date
Fortunately, unlike you, I don't need to report quarter PNL or make disclosure to the SEC.
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Great quote;
among the best ways to lose money Larry Mint Hite put it like = ''be a genius''
He noticed a pattern i did not\ big time ''ivy league losers''
Risk to Reward
One of those bullshit terms the industry made up and uses
Reward - does anybody (other than the invisible ones) - really ever know how far price will move in their favor - no
And if you think otherwise - then you're essentially saying you can accurately predict price movement
Risk - this the only one of the two that can (and must) be defined (and obviously adhered to)
Stop needs to be place where the position has broken down and no longer valid (behind a "defended" level or similar for example)
Then..., position size needs to be such that it within one's risk tolerance
ATR can help with above - just be aware volatility changes / evolves throughout each session
RN
One of those bullshit terms the industry made up and uses
Reward - does anybody (other than the invisible ones) - really ever know how far price will move in their favor - no
And if you think otherwise - then you're essentially saying you can accurately predict price movement
Risk - this the only one of the two that can (and must) be defined (and obviously adhered to)
Stop needs to be place where the position has broken down and no longer valid (behind a "defended" level or similar for example)
Then..., position size needs to be such that it within one's risk tolerance
ATR can help with above - just be aware volatility changes / evolves throughout each session
RN
Let me quess,you are a trend follower...
That's great,and may work for you,but to completely disregard the "reward" side of the equation is absurd....unless you are a systematic trend follower or reinvented probability and statistics.
That's great,and may work for you,but to completely disregard the "reward" side of the equation is absurd....unless you are a systematic trend follower or reinvented probability and statistics.
Trend follower - you make out that is a bad thing????
What exactly is a trend
Which direction does it move
How long does it last
How far will it move
How does one determine its beginning
How bout its end - what's that look like
Any variations to it
Curious minds and the like
===============
Aside - hard to refute math - it is the universal language
TIA
RN
Agree and said as much on the first page.
Risk, although I prefer trading equity deployed, can be defined in advance. Reward can only be guessed at.
Not a bad thing at all, no need to be defensive.You came out with a very strong opinion,that I doubt you could back up from a probability/statistics perspective.
I'll go out on a limb and say you are not a believer in any form of DCF analysis, nor the math behind option trading and determing fair value. It appears you disregard things like Kelly,Expectancy,POP/ distributions,and as I said,that is not really necessary if you are systematic trend trader,but that doesn't justify your view on Risk Reward..
Closer to your heart,how do you explain Oneil/Canslim/Minervini Risk /REWARD metriss,or anyone that trades with stops and profit targets?
I'll go out on a limb and say you are not a believer in any form of DCF analysis, nor the math behind option trading and determing fair value. It appears you disregard things like Kelly,Expectancy,POP/ distributions,and as I said,that is not really necessary if you are systematic trend trader,but that doesn't justify your view on Risk Reward..
Closer to your heart,how do you explain Oneil/Canslim/Minervini Risk /REWARD metriss,or anyone that trades with stops and profit targets?
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