Have you ever heard the cliché “I’m only as good as my last trade”? In other words, if I’m losing money, I must be a bad trader. I think just about everyone would say that of course that’s not true. But, I know I still have to fight that feeling when I [...]
There’s a hypothetical scam that I’ve seen outlined in two trading books now, and I think it’s clever so I want to share it. A book I’m reading right now kind of turns its idea inside-out, with scary implications.
Anyway, the scam goes like this: Say you want to grow your investment advisory business. [...]
We are all, theoretically, at risk of total financial ruin. Imagine you find a system with a 99.9% success rate, an average per-trade gain of 50% equity, and an average loss of only 0.01% of equity. You would use it, right? So would I! After all, the expectancy would be: [...]