The stockmarket has inherent risks. Take Bank of America trading desk, they win 85% of their trades. So, by implication, they lose 15% of the time. Think about betting the farm and every last cent you have. What if the time you bet everything and went all in, it fell into that 15%? That would be enough to wipe you out entirely. Totally, ignoring risk management. Look at LTCM and Option Sellers. Without risk management, you might as well slash your own throat. Risk management is there because it is what separates the wannabees from those who really trade the markets to make a living out of it. Hedge funds by the word, "hedge" protects their positions. They are no dummies.
What % are you willing to sacrifice to maintain a position?
- Thread starter Cuddles
- Start date
The stockmarket has inherent risks. Take Bank of America trading desk, they win 85% of their trades. So, by implication, they lose 15% of the time. Think about betting the farm and every last cent you have. What if the time you bet everything and went all in, it fell into that 15%? That would be enough to wipe you out entirely. Totally, ignoring risk management. Look at LTCM and Option Sellers. Without risk management, you might as well slash your own throat. Risk management is there because it is what separates the wannabees from those who really trade the markets to make a living out of it. Hedge funds by the word, "hedge" protects their positions. They are no dummies.
You or I do not know what GS is doing with it's billion of dollars.
they are not eating it
they can only do one thing with it what they are supposed to do
if you believe markets are risky they are.
BANKS do not scalp.....we are in a different segment.
that is why I can go all in.....I am not holding for ten years or even a day or even a hour.
I am no dummy either
I am a scalper
that should explain it
Depend on the "win rate". If the number is good & i feel extremely confident in the deal then i can risk 20% of my portfolio, but that is rarely the case. Most of the time i just risk 5% of my portfolio. So it is something between 20% and 5%.
Now i beginning to keep my position longer, so the risk-tolerance is increased as well
Now i beginning to keep my position longer, so the risk-tolerance is increased as well
Banks to do not scalp but, trade the stockmarket. Also, you say, you can go all in, does that mean you have blown up your account, lost all your monies and how many times? Nobody bats 100% without a single loss and since, you go all in, you will suffer losses and lose all your monies when you are all in. The only guy who claims he trades the stockmarket and has a 100% batting average was Bernie Madoff. He claims to have placed 77 straight winning trades without a single loss. Top traders who trade the stockmarket said then, that he was a fraud because his claim was outrageous and defies simple common sense.
I trade for myself.
I have made this 'claim' when specifically asked to do so in this thread.
i do not accept subscriptions nor money like Madoff
so it is your accusations that are arbitrary and personal.
if I am a fraud I am frauding myself.
so please do not make personal remarks just because somebody does not trade like you
the faster I lose my money the happier I am.
money that goes fast, will come back fast when the right thing is done..
some leave trading when money is lost fast.