Prudent Risk Management Is The Only True Edge In TRADING

Discussion in 'Risk Management' started by Buy1Sell2, Jul 6, 2015.

Is Prudent Risk Management the only true edge in trading?

  1. Yes

    53 vote(s)
    29.9%
  2. No

    124 vote(s)
    70.1%
  1. JSSPMK

    JSSPMK

    3rd Accumulator wins at odds of 6.5, 3 out of 10 hit rate (low), 100% return.

    [​IMG]
     
    #371     Dec 4, 2016
    steve2222 likes this.
  2. Buy1Sell2

    Buy1Sell2

    There is nothing new under the sun.
     
    #372     Dec 4, 2016
  3. algofy

    algofy

    False

    Im using non standard bar types and non standard indicators. When you combine that with multiple conditions for entry, it's highly unlikely.
     
    #373     Dec 4, 2016
  4. algofy

    algofy

    Geez, the amount of people who think they know everything is making me want to vomit.
     
    #374     Dec 4, 2016
  5. 777

    777

    Yes, of course.

    It is better to have a 100% edge on a 50/50 shot like betting on a coin with two heads, than a 100 percent edge on a 100 to 1 shot where you would win only a small percentage of the time.
     
    #375     Dec 4, 2016
  6. MrScalper

    MrScalper

    Why do you persist as if you are right. Is your trading the same?

    The ability to not risk too much per trade, use stops, take profits at pre-defined levels and scale in an out of positions does not guarantee success (consistent profits).

    Success is when your winners and losers are added up and the end result is a profit. The amount of trading you do is determined by your circumstances, available capital, understanding of the chosen markets/instruments and last but not least, your experience.

    Prudent risk management is a fundamental requirement (which most fail to recognize), it is not "an edge". An edge is something like using your accumulated experiences to make good judgement calls in relation to placing and exiting trades. Daytrading the ES is not the same as taking a position in INTC for 3 to 6 months.

    The worst thing any person starting out can do is take seriously what people post on the internet. Venturing into any new business without covering the proper fundamentals is a foolish endeavor. The financial industry is like a big circus, full of clowns who make people laugh (whilst picking their pockets at the same time).

    It is not an edge, why can you not understand this simple fact?
     
    #376     Dec 4, 2016
    eganon69 likes this.
  7. JSSPMK

    JSSPMK

    Does that mean we are to ignore your post?
     
    #377     Dec 4, 2016
  8. algofy

    algofy

    Honestly 90%+ of everything on here should be ignored...including most of what I post :)
     
    #378     Dec 4, 2016
  9. Buy1Sell2

    Buy1Sell2

    Because I am
     
    #379     Dec 4, 2016
  10. Buy1Sell2

    Buy1Sell2

    These are not part of PRM.
     
    #380     Dec 4, 2016