Kidnappings in developing countries are a totally different thing. Same with historical times. the 4th 911 plane guys (“let’s roll”) called it right. Most hijackings end up largely okay. (As okay as a hijacking can end). Anyhow this is not a clear and cut answer and I’m not surprised we have different ways of looking at it now and I’m sure our views of looking at it would differ in the actual situation and after an actual event (assuming we are still alive). To bring this back to trading: how do our views on how to handle a kidnapper reflect our views on portfolio risk management?
Wouldn't know. I daytrade - almost exclusively. Of course I take multiple positions most days so I have parameters I follow but they obviously are not applicable to a longer term portfolio outlook.
you don’t do any risk management with your day trading? you don’t take into account risk reward? Your parameters don’t take into account risk?
Do you know of any parameters, in trading, that don't take risk into account? As for the common term Risk/Reward, it is backwards but then so is the thinking itself. Price doesn't care. I follow PA to determine where to enter, where to put my stop and if it moves in my favor where eventually to exit. What some ratio says means nothing to me. Further to my parameters, they determine how much trading capital is allowed per trade or trades overall at one time. Risk is of event happening or not happening. Not capital in play.
your post stated that because you day trade you don’t have an opinion on risk. Price doesn’t care about risk but your parameters of stops and exit definitely do.
Read it again. Don't care for risk/reward ratio or proper term to use reward/risk ratio if one is being grammatically correct. Risk is not losing money on a trade. Period. It is whether or not one is correct in direction and eventual outcome. Learn the difference.
An initial stop is where the trade would be wrong. A trailing stop would be where it would be wrong to hold further. Time/price/pattern determine all. Do you care where (if I used one) R/R told me to put my stop? You have no idea where that is. Same for me if I cared where your stops where, no idea. Same for anyone else in the market during either of our open trades. But PA can show where someone's stops - or should I say a cluster of traders stops. And stops are really what makes price move. Period. Again.
so that’s your risk and your reward. You studying other people’s stops to figure out how to exploit them, is your trading strategy.