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Money Market Fund |
I for one have tossed the idea of a very low risk per trade idea and I stick to this in a very strcit manner. I think a lot of traders think of this the wrong way e2€“ after a larger sum of trades, and based on expectancy value, they figure out exactly how far they can stretch the risk without getting too close to the risk of ruin. However, it seems needless to say than when one enters a high risk exposure trade, the psychological aspects of trading kicks in even harder, which obviously makes it more difficult to take e2€œrationale2€9d decisions (read; close out prematurely in relation to a define profit target, or constantly moving the stop loss further away as the possibility of being stopped out was left out of the initial decision making process). Even if I, based on historical performance, could increase my risk exposer and be more profitable, I would still prefer to keep it very low, due to the above mentioned idea. Anyhow, good post John, as always.
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