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. pinabetal

    pinabetal

    Amen and amen except to last sentence!
     
    #421     Jan 2, 2017
  2. pinabetal

    pinabetal

    Yes, Yes! Yes! Yes! Timing will let you know VERY soon if you are right OR wrong. Hope will keep you in a loser. Greed will keep you in a winner that soon becomes a loser. Bite the bullet. Take the loss. Bite the bullet take the winner. If you have a sound mathematical basis for entry..risk..exit..profit target..win rate..stop loss..average win..average loss..then math, which is relentless, will ALWAYS be on your side. You then only have to have the timing right and have discipline and some $$ to trade with. Timing will very very soon manifest itself as right or wrong. I define discipline as being responsible (regardless of how you feel) to do WHAT you are supposed to do, WHEN you are supposed to do it, and HOW you are supposed to do it and pay ATTENTION to detail.
     
    Last edited: Jan 2, 2017
    #422     Jan 2, 2017
  3. This whole thread has turned into a pile of horseshit. Great success (hedge funds, algo shops, independents) in this industry revolves around the ability to separate signal from noise, which means timing and entry. Many ways to do it, but not easy to do. After that, a risk management scheme could be structured by a sixth grader. That's the easy part.
     
    #423     Jan 2, 2017
    BONECRUSHER likes this.
  4. achilles28

    achilles28

    Successful trading is 95% this^.
     
    #424     Jan 2, 2017
  5. So wrong. If that was the case every mathematician would be filthy rich by designing elaborate risk management models around blind bets.
     
    #425     Jan 2, 2017
    BONECRUSHER likes this.
  6. algofy

    algofy

    Yep agree with this.
     
    #426     Jan 2, 2017
  7. pinabetal

    pinabetal

    Exactly
     
    #427     Jan 2, 2017
  8. achilles28

    achilles28

    Believe whatever you like guys. We're just talking with >12 years experience each. Hbu?

    btw, most hedge funds are just mathematicians, statisticians and programmers, anyway.
     
    #428     Jan 3, 2017
  9. Mtrader

    Mtrader

    Yes, but you forgot to tell for whom it is: those who have no clue about trading and are just gambling.
     
    #429     Jan 3, 2017
  10. Prudent risk management is the ONLY TRUE EDGE? How many of you that actually believe this, can make a living trading random entries...or believe you could make a living with random entries if you had to? If you don't...why not? Why do you use charts, indicators, math...etc. Please don't say "to find that extra edge", because it appears that believers of this concept don't need an extra edge...they've already got all the edge they need...prudent risk management...right!!!!! Why do you need anything else?
     
    #430     Jan 4, 2017
    profitlocker, pinabetal and eganon69 like this.