that does not mean every trade will have to be or can be profitable.....in fact that is impossible
but that does not mean you cannot be overall profitable
trading using moving averages
- Thread starter padutrader
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that does not mean every trade will have to be or can be profitable.....in fact that is impossible
but that does not mean you cannot be overall profitable
Great. Please explain Paul Tudor Jones, Ed Seykota, George Soros, Warren Buffett - for that matter, all successful traders in the world. Are they all accidents?
You seem to imagine that a trader's edge is some single fixed action, carved in stone and to be followed religiously whether it works or not. I don't think I'm going out on a limb by saying that this perspective is absolutely and categorically wrong.
Which has nothing to do with an edge. Risk management is comparable to brushing your teeth and taking a shower; it's good hygiene, but it will not result in big muscles, a good tan, or the ability to land a 300-lb punch on target. You have to go beyond basic hygiene and take positive, repeated, correct actions to achieve those.
Until he learns to practice that basic hygiene, yes. But that will not make him money; it will (or should) prevent loss.
Unless, of course, the probabilities - remember, that thing we were talking about before you changed the subject? - don't play out. Risk management also does not offer absolute guarantees.
Great. What does that have to do with trading NOT being about probabilities? That's what your question implied, and it would be nice if you'd stick to that subject and explain your viewpoint (which, for the moment, remains incoherent.)
Warren Buffet takes huge risk.....he buys and holds......so he gets huge reward.
Soros and all other successful traders only concentrate on one thing:
there is no edge
there is always someone taking the other side...........
you have to match probability with reward: if you have high probability you cannot have high reward.......so if there is high probability WHO IS TAKING THE OTHER SIDE OF THE TRANSACTION?
what is right?
there is nothing right or wrong in trading.....you only have to be doing something consistently within the parameters of probability reward and risk.
if you do not calculate these three-and most inexperienced traders do not-you will be inconsistent
you are talking about probability as if that is the only thing that matters in trading.
i am not profitable because i do not like to take risk.
this is the problem with me
i have believed that knowledge will reduce risk.
i have after 30 years come to the conclusion that that is not true.
risk will always be omnipresent.
and that is why i am losing interest in trading.
i had believed and was told that intelligence makes good traders and that i had an edge because i was intelligent.
it is risk takers that make the most money
You clearly don't know anything about Buffett or Soros; all you have are your prejudices which you "support" with media soundbites, which are worse than not having any information at all. If you have any original thinking on the subject, you've hidden it so well that it's not discoverable anywhere, and you keep recycling trivialities that anyone can get from the first ten minutes of searching Investopedia. I'm going to let you go your merry way and wish you all the luck in the world... you're going to need it, because relying on nothing but risk management to earn for you is just a route to slowly bleeding to death.
A random trader with imperfect information. I take it you've never played rock-paper-scissors before? Your extremely naive theory (or, much more likely, repetition of something you've heard somewhere) equates zero-sum with inability to win consistently, and these things are not the same.
Gotta mark this, simply because it's so funny:
OK, I'm really done now.
OK, I'm really done now.
and you do?