Discussion in 'Risk Management' started by crgarcia, Jul 31, 2008.
The only "Holy Grail" is money management?
or mary magdellan, or a cup he heyzues slugged grape juice from at his last tgif.
Eliminate the "large loss on a single trade", and you're a leg up on the game.
So, so true.
No. Not unless you are Van Tharp.
Very tough to do so. Loss toleration depends on the volatility of a particular security.
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).
Yep, because we may risk being out of a position before it's going to show positive result.
Perfect money management alone will lose you money in the markets. Fact.
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.
Separate names with a comma.