BELIEVING in yourself that you can reach financial freedom is THE only true edge in trading. THE BASIS IS DREAM, AND THE ULTIMATE IS DREAM.
The market is becoming more unpredictable day by day, surely risk management is very important. I won’t say that its the only thing that gives you an edge in trading, but yes one of the most important ones.
If you are taking low risk..low probability..high reward trades. You gonna miss most and hit a big one once in a while. If that is what you like doing then that is the style for you. It is one way to trade but certainly NOT the ONLY successful way to trade. You can call it PRM but PRM is an independent factor that can and should apply to any style or strategy of trading and not to just a low win rate, small risk, low probability, big reward style. I prefer high probability, larger risk, smaller reward strategies and make more $ by size. PRM is also an integral element in this strategy. My style produces high win rate which I LIKE. In my style high win rate is the most important metric. While the former style is waiting around for a successful trade to happen I am doing one after the other in rapid sequence and making money on size with the potential of many times over in profits of a buy and hold... let a let your winners run trader. Hurst discussed the whole matter in his book. I actually do the opposite. I add to my losers. Just a different style. Suits me.
We laughed at @Buy1Sell2 for saying Risk Management Is The Only True Edge. Now I understand what he was talking about, I need to reread his thread on risk management.
B1S2 is the clown who has lost >700 ES points/lot since his journal began. Same guy who ignores a trade after it's gone 2-300 points against him. Edge?