The most vital and strongest pillar in trading without risk management you just burn through your cash.
%% Including but not limited to; you like up trend trading profits in 4th quarter bull market?? I do 2........................................
"What goes on inside a profitable speculator's mind?" I'm looking at this from beyond an intellectual level. From beginning to end of their contact with speculating in markets. Somewhere I realized the correlation. Perhaps it was examining my own periods of success and failure. Perhaps it was the countless quotes from market wizards. And the flip side, the continual obsession amateurs (who seem to always lose when the trend changes) have with making a quick fortune on one single trade. They always beat themselves up when they miss a big move like DWAC yesterday, but never sweat huge paper losses! This second type seems to make up the infamous 95% we all hear about.....
That is the point - the infamous 95% don’t lose just so they don’t have risk management in place. Their entry itself was incorrect.
Well risk management is a great answer. I've heard two or three traders say that what they focus on is how much can I lose on this trade rather than how much can I win.
One of those would be me. I closed two index future trades today in profit, after SEVEN WEEKS OF HORRIBLE DRAWDOWN, and rolled one of those into March. I levered up one into a MNQ trade because of upcoming earnings. Keep the leverage low, and one will survive the BS.
Nice of you to give your money a seven week holiday. Most traders are slave drivers and want to keep their money working for them. Remember the market always comes back. Eventually. Maybe!
Fuck Risk Management. That risk management shit is useless. You either can make money or you can not.