Is trading rally risky?

Discussion in 'Psychology' started by qdz, Dec 4, 2002.

  1. qdz

    qdz

    Or trading dip risky? I think they are probably the same. What do you think?

    :p
     
  2. The good news is it becomes risk-free once you have lost all your money. :D

    Trend trading is one of the best ways to make money, the best trader of all times, I would say, Ed Seykota made his fortune trading only trends.
     
  3. TSaimoto

    TSaimoto Guest

    I used to be a mechanical trend-follower, or actually I was into Van Tharp's expectancy risk model which made it more appropriate to grab and ride into trends. Now, I'm a little free from that and I'm able to take dips and go counter-trend in a sense.

    Right now, I do both ride it and in a way counter-trend scalp. Both situations are different in which what kind of confirmation you're looking at. While I'm trading, I just see an opportunity like:
    *Ping* "Hey, there's a scalping pattern...."
    *Ping* "Hey, there's a trend-following pattern..."
    *Ping* "Hey, there's a counter-trend pattern..."

    Based on each kind of *Ping*s I'll put the appropriate stops and position size. Pings may lead to other pings like a counter-trend may lead to a trending pattern and so forth. Scalping and Counter-trend trades have extremely tight stops and trend-following pattern has a wider one.

    Well, your question is: whether it's risky or not... My answer is no it's not. It's like me trying to do a brain surgery = extremely high risk and an experienced brain surgeon operating = little risk...
     
  4. JWS11

    JWS11

    You mean: is trading risky? Yes. But not too much. Less risky than driving a car, for example. You see, in trading, they never maim you or kill you. :)
     
  5. Only risk is to your sanity.... My wallet keeps getting fatter though....
     

  6. Not quite; it can be a little bit more risky if you're married.:D
     
  7. GD2KNO

    GD2KNO

    if there is a risk in trading it's not the market, but the trader. if you follow a time tested and proven system or technique, always use intellegent stops and money management - then trading is probalbly less risky than most businesses

    "YOU" are the risk - manage you and trading is a profitable, enjoyable way to earn a great living.


    :) Happy Holidays & a Prosperous New Year :)
     
  8. ... you'd better not trade :)
     
  9. GD2KNO

    GD2KNO

    i think of trading the same way i view driving a car at 65 mph - risky - but very useful if managed properly

    the secrete is finding the way to manage it properly

    thank God i found a way for someone to do it for me