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. Pekelo

    Pekelo

    I will prove the opposite: Just like in trading, in black jack (or poker) one has to wait for a preferred set up that is advantageous for the player with a higher than average probability and play/trade at that point. That requires patience, discipline and experience.

    What did I win?
     
    #601     Feb 6, 2018
  2. Buy1Sell2

    Buy1Sell2

    That's easy. In Blackjack you have no way to let a winner run for extended trend gains. You either get 1 to 1 or 3 to 2 payoff. You never have an opportunity for a lopsided 20 to 1 like you do in trading.----Mic Drop---
     
    Last edited: Feb 6, 2018
    #602     Feb 6, 2018
    algofy likes this.
  3. I think the mic dropped on your toe. You've only proved ONE way they don't correlate. Remember...there are traders that don't need extended trend gains to win at this game. I don't think I've ever had a 20 to 1 gain.
     
    #603     Feb 6, 2018
  4. Pekelo

    Pekelo

    Not true. If you win a 1 million dollar prized championship, your ROI is easily 20-50 to 1 (or whatever the buy in is):

    https://en.wikipedia.org/wiki/World_Series_of_Blackjack

    Playing in a tournament is the equivalent of letting a winner run. So again, what did I win?

    Furthermore:

    http://www.bjtournaments.com
     
    Last edited: Feb 6, 2018
    #604     Feb 6, 2018
  5. Buy1Sell2

    Buy1Sell2

    #605     Feb 6, 2018
  6. Pekelo

    Pekelo

    As usual with you, not an argument. :)
     
    #606     Feb 6, 2018
  7. Buy1Sell2

    Buy1Sell2

    There is no argument to be engaged. I have already shown why BlackJack and trading are not correlated. You were trying to interject an absurd notion concerning jackpots.
     
    #607     Feb 6, 2018
  8. tomorton

    tomorton

    Never played blackjack but I thought nickynoes was correct. And this was already making me think of the similarity with pyramiding a winning trade. Which is something I do.
     
    #608     Feb 6, 2018
  9. nickynoes

    nickynoes

    You must know of Ed Thorp and have read his interview in the Market Wizards series. Do you really want to argue that there is no correlation at all? I think everyone knows it is not the same thing as trading, as there are completely different rules. But saying there is no correlation between professional blackjack playing and professional trading is a bit absurd.
     
    #609     Feb 6, 2018
    BONECRUSHER likes this.
  10. Buy1Sell2

    Buy1Sell2

    Blackjack and trading are not correlated.
     
    #610     Feb 7, 2018