Prudent Risk Management Is The Only True Edge In TRADING

Interesting posting. -and thank you for doing so. Tightening stops can certainly change a system from losing to winning as well as letting winners mature and position sizing etc. ---Managing risk is the only variable that we can control as traders so it makes sense that prudent management of same is the edge.---Ishmael.

 

Stops really need to be outside of the noise so the further tightening likely caused the stops to be inside the noise. This is all part of PRM.

 

This makes sense and I hope this works out for you! But you might also consider that B1S2 is saying risk management is the "METHODOLOGY"...what you're saying is risk management is improving your methodology into an edge...BIG DIFFERENCE! P.S. Otherwise you could just enter randomly...if B1S2 is correct.

 

Because of srm

 

That's correct

 

Is RM the only reason you're profitable...B1S2 would say YES? Is he correct?

 

no

 

your time would be much better spent buying a lotto ticket

 

Virtually every wildly successful trader places risk mgmt as the most important aspect in trading.

'Risk control is the most important thing in trading.' Paul Tudor Jones

 

Did you mean to say..."Virtually every wildly successful INVESTOR places risk mgmt as the most important aspect in INVESTING"? As a short term TRADER I would die without my edge!