Prudent Risk Management Is The Only True Edge In TRADING

So you confirm that capital management cannot generate profits.
Where do the profits then come from? Something should generate the profits.

 

They come from Prudent Risk Management.

 

One prudent risk management technique is: Doubling Down or Martingale. Sooner or later you win big.

 

Is Prudent Buying Low and Selling High considered prudent risk management?

 

As long as risk is small and profits are allowed to mature.

 

So, you admit that "Prudent Buying Low and Selling High" exists, but you won't consider it to be a "true edge"...except under the condition of small risk and matured profit? Do you believe in the history of all people, that not one person has been able to profit long term buying low and selling high...with higher than a small risk and less than what could be considered matured profit taking? Not a single person?

 

The true edge in trading is Prudent Risk Management of trades where losses are kept small and profits allowed to run to maturity. If that means buy high and sell higher or sell low and buy lower or buy low and sell high, it doesn't matter.

 

That sounds more like hoping and praying and just generally, loosely seeing what happens and unfolds ,

They say the best defense is initially, firstly having a strong offense -- or skill, or tactics and execution and wisdom ,

I know everything sounds like just words on ET and textbook wisdom...But if you truly think about it on another level, and are able to apply it in the real world...you will be on a different planet then the other traders,

2018

 

Hoping and praying would be taking positions with large risk or no attention to risk and taking profits as soon as it gets in the money. ---PRM doesn't allow you to hope and pray.

 

I thought the term "buy low and sell high" just meant buy price lower than sell price.