How NOT to trade-

Truth

 

alot of ppl don't know how to trade. -- regardless if you have a high school education, or PhD. or if you're male, female...young, old, etc etc etc.

 

I'm sure that's true, just as it's also doubtless true that people with some kind of formal education in statistics, probability and math have advantages and collectively better outcomes when it comes to trading: there might be reasons why so many financial institutions prefer to appoint math/science graduates with top degrees from top universities to their entry-level trading career positions, after all.

 

Those are some serious internal issues.

 

Exactly.

Renaissance Technologies has never hired a Wall Street type: MBA, Finance, Economics, etc.

Renaissance has hired: science, math, computer, even a code breaker and a speech therapist who had high pattern recognition skills.

For manual trading, some firms like SIG give big bonus points to master games players:

Poker, chess, backgammon, bridge, newer video-game competitors, etc.

 

uvxy is a vix etf right? I thought those eventually went back up.

 

As I've said before---the only edge available to the retail trader is Prudent Risk Management.

 

Risk management is not what is typically thought of as an edge- positive expectation on bets/trades. Risk management deals with variance.

Without "positive expectancy" on your bets/trades, you will be a long-term loser.

Exaple:

A. Every dollar bet is worth 1.01
B. Every dollar bet is worth 1.00
C. Every dollar bet is worth .99

Only in example A can a trader apply prudent rusk management and win in the long run.
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But I think your idea is that solid risk management is very important, is very importantl.

 

Incorrect. ------Prudent Risk Management creates positive expectancy.

 

Unless we are misunderstanding terms, you are incorrect- flat out wrong, so let me see if we are just on different pages:

It is well known that there is no risk management/money management scheme that will make a dice player or a roulette player a long term winner because the player has a "negative expectation" on every bet he makes.

Just like if I let you bet heads on my trick coin that will randomly throw only 40 percent heads, you will not win in the long run no matter how you jiggle your bets (assume i am bankrolled).


Do you agree with this well known fact?

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Perhaps you are not using the term "positive expectancy" as statisticians, professional gamblers, trading quants, etc would use the term.

Here is how those people think of/define the term:

https://en.m.wikipedia.org/wiki/Expected_value