I agree with most of what LP said in this comment. Now if he would quite being a statesman, and get back to the name calling!
Unlike Bill I do believe in black swans. Not that not believing in it is bad either. (that’s the statesman in me). The problem is that I’m torn between [...]
I’m beginning to see stop losses and R multiples in a different light lately, and especially since my last trade. I wanted to write about what a stop loss is and what it isn’t.
What A Stop Isn’t
Many people see their stop loss as the point that they admit that they were “wrong” about taking [...]
I mentioned in my last post on the topic that Ugly took a hit trying out futures. Now, it looks like Phileo caught “futures fever” and took a bigger loss than he wanted.
Phileo’s smart, and will recover stronger for it. In a way, this is the best outcome when you lose sight of [...]
I, for one, welcome our new futures-trading overlords…
Well, you gotta admire the enthusiasm of CalTrader, who wants to show you how to build wealth by simply making 20% every day you trade. Needless to say I’m skeptical. That doesn’t mean I’m a naysayer like he’s complaining about in his post. I know [...]
Ever wonder why a 1:3 Risk:Reward ratio is so prevalent as a rule of thumb? Ever since I’ve been reading about trading, I’ve heard people say that they ideally look for at least a 1:3 ratio, even if they’ll settle for 1:2. In this article, I’ll talk about how you can derive this [...]
Most everyone intuitively knows that it’s harder to bankrupt bigger accounts than it is to bankrupt smaller ones (assuming all else approximately equal). But, for any two account sizes, just how much more or less danger is there? Twice as much? Ten times? Can you put a number on it? [...]
I’ve always thought about diversification as the buy-and-holder’s game. As in, not applicable to me. It always struck me as a strategy for people holding only long positions… they want to be in several industries so that if one declines, it doesn’t pummel them too badly.
The way to build wealth fast for a trader [...]
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: [...]