A few words for newbies

Discussion in 'Strategy Development' started by quant168, Oct 3, 2008.

  1. quant168


    At least you need two things to be successful in long run:

    1. Edge
    2. Money management

    First, if you don't know what's your edge (please, use some statistics.).. If you don't know, STOP. You are gambling without knowing your odd. Chances are you will lose no matter how you bet and trade.
    Then if you do have an edge, money management becomes very important. Thinking the more leverage you use, the quicker you make money? Go read Kelly criterion. You could lose if you don't bet the right size even you have an edge!
    If you understand what I am talking, you are probably there
  2. Pinky, are you pondering what I am pondering?
  3. quant168


    LOL, maybe. I bet my size is much larger.