The only "Holy Grail" is money management?

Discussion in 'Risk Management' started by crgarcia, Jul 31, 2008.

  1. The only "Holy Grail" is money management?
  2. me2


    or mary magdellan, or a cup he heyzues slugged grape juice from at his last tgif.
  3. Eliminate the "large loss on a single trade", and you're a leg up on the game.
  4. So, so true.
  5. Vienna


    No. Not unless you are Van Tharp.

  6. eagle


    Very tough to do so. Loss toleration depends on the volatility of a particular security.

  7. Tough to do? Back off on the leverage and exercise stop discipline.

    The TRADER is in control of his "single large losses"... (not that we can't have a string of smaller ones which add up to something significant...). If you take a big hit on one trade... it's your fault alone 99% of the time (allowing for external shock like 9/11).
  8. eagle


    Yep, because we may risk being out of a position before it's going to show positive result.

  9. Perfect money management alone will lose you money in the markets. Fact.
  10. Strangely enough, the 9/11 happened during a clear downtrend, so it wouldn't have caused further losses for those trading along the main trend.

    Of course trend faders, and bottom pickers got burned.
    #10     Jul 31, 2008