How do you effectively balance risk and reward in capital management? It's often said, 'Never risk more than you can afford to lose,' but determining that threshold can be complex. How do you define your risk tolerance, and what strategies do you employ to ensure that your capital management aligns with this tolerance, especially in volatile markets? Share your insights and approaches to managing risk while striving for profitability.
This makes the 3rd time you've asked this question. Repackaged, but still the same question. This is a BOT.
That's super easy, there is a Returns Matrix with 100 different combinations, each with it's own unique dynamics, for example 58%pa net investor return would require $10,000 units, can have same day redemption using institutional model with 5% standard drawdown risk plus 20% extreme event drawdown risk on one year cycle duration, super easy.
%% MAKE sure to have REal Estate/ +business you mostly control; banker dad said he wished he had bough 51% of that co, dont have to do that , but make sure you get et to control it.Make sure to give 10%+ dont have to have a Robin Hood Foundation like P t Jones or Bill + M gates , but again, you get the points....................................................... [2] For occasional day trades never bring home a loser. 2.777] losses are fine on swing trades but as long as its according to plan; IBD allows 7-8% 777] But like a super bucks short seller says I would rather lose 5% than be part of the herd; sounds right max, since shorts can have unlimited losses/ long cant 888]Panic seller$ never win, especially intraday; planned sellers could win. M Minervi said risk 10%, prefer 7% -8%; of course on open profits depending on when + where we got in could risk more since my plan forbids panic selling. Especially since losses can gap10% against you or any more than 10%............................. 999]Weekly P+L helps, unexpected % gains in an uptrend no problem\losses bigger than planned % \cut back\ Super easy plan ; execution may be a bit more tough or rough LOL
Limit each trade to 1-1.5% of your balance. This approach defines your risk tolerance and aligns with it. Use stop-loss orders, maintain a favorable risk-reward ratio, diversify your investments, and stay disciplined to manage risk while pursuing profitability in volatile markets.