Losses just aren't that bad. Even long strings of them.

Discussion in 'Risk Management' started by jnbadger, Apr 12, 2022.

  1. jnbadger


    Yeah, but most don't want to psychologically accept a low win rate. I fell into that trap when I first started. Well, actually for quite a few years.
    #11     Apr 12, 2022
  2. notagain


    More important than high win%, is a strategy that inherently has a stable win% and does not vary too much.
    #12     Apr 12, 2022
    nooby_mcnoob likes this.
  3. deaddog


    Isn't there some sort of 80/20 rule?
    It seem like 80 percent of my profits come from 20% of my trades.
    One good trade can make your year, one bad loss takes you out of the game.
    #13     Apr 12, 2022
    fan27 and nooby_mcnoob like this.
  4. jnbadger


    Yes. And one that fits your personality. That's why I'm able to take multiple losses in a row. It sucks, and I need to suck in my gut sometimes because of some discomfort, but I guess I've learned how to be comfortable being uncomfortable. I know I'm stealing that from someone. Didn't a Navy Seal say that in a book or something?
    #14     Apr 12, 2022
  5. SunTrader


    Don't want to beat a dead horse (many previous threads here have done so) but general statements ... generally are meaningless.

    What someone else does is what someone else does - whether that someone is a professional or not.
    #15     Apr 12, 2022
    damnpenguins likes this.
  6. newwurldmn


    he probably washed out and didn't make retirement money. Most people don't make retirement money by their early 40's at a firm like Goldman. They will have a few million in net worth but its not enough to be done forever. And a sellside trader is a very different skill than a prop trader or an investor.
    #16     Apr 12, 2022
  7. jnbadger


    I'm not sure, but it may have been Richard Dennis who said all of my profits have come from 5% of my trades. I think that was in the first Market Wizards book. Not sure it was him though.
    #17     Apr 12, 2022
    smallfil likes this.
  8. Buy1Sell2


    #18     Apr 12, 2022
  9. jnbadger


    I know. And thank you. I'm a pro by definition. (licensed, working prop), but it doesn't matter. When someone asks me what I do, I just say "stock market". It saves a lot of hassle. I told a couple of people I was a professional stock trader about a year ago. What a pain in the ass.
    #19     Apr 12, 2022
  10. Overnight


    Next time, tell them yer a "stock operator" like Livermore.

    Many moons ago as a cab driver in Florida, I picked up this totally drunk guy and drove him home. I told him the fare, was like $12. He said "Well, I'm a stock *insert weird word here, I cannot remember what word he used but it was not broker or operator*, and I had a really good week."

    He gave me a $100 tip. I was like, dayum!

    Moral of the story? Screw trading. Just drive a cab and pick up drunk stock *insert weird word here*. :)
    #20     Apr 12, 2022
    David's faith and rb7 like this.