In order to be successful in trading, it doesn't matter whether you are right or wrong when placing a trade. What does matter is that when you are wrong, you lose a little bit and when you are right, you maximize your gains. Why do most traders (especially day traders) lose? They don't have prudent risk management skills. End of Story. Now, a lot of folks may say, "but the newbie trader doesn't know how to pick entries and exits". While that may be true for some, the real issue is that when they are wrong, they stay married to a position, or add to a position in order to not admit failure. Your best bet would be to learn to embrace failure, learn to shrug it off, learn to admit when wrong and learn to stay in trades that are winners. You see, Prudent Risk Management is not just about placing an initial stop---it's also about managing a winning trade. Remove the focus from high winning percentage. Retrain focus on losing a little and making a lot.
Your refusal to completely and unequivocally define "Prudent Risk Management" (PRM) is very telling. So far you've made it mean whatever the hell you want it to mean. That is the action of a crank or a troll. Will you at long last tell us exactly what you mean by PRM? If yes, thank you. If not, why not? A full definition of PRM will clear up any misunderstandings and allow us all to progress from here.
says you, so you're saying someone without an edge or plan or discipline can make money with just good risk management I say your're completely wrong. Takes a an edge, discipline, self confidence, self trust AND risk management
I'm using Prudent Risk Management in my local casino, on roulette. I only play on the number 21. I employ PRM because i only put £10 on a number, and when i win, i make a lot, £350! Can't understand it though, I'm still down money even though i won a few times in the last 100 spins. Thought i had the EDGE cause i was using PRM...oh well.
You must have an edge that over time gives a better chance of one thing happening over another. Each individual trade doesn't matter it's an edge over time that has a positive expectancy. Let's see Mark Douglas or you
The only good risk management strategy in Roulette is not to play at all. Your example is not appropriate.