"Get your profits, let your losses turn into profits"

ieonqutav · Nov 27, 2009

Do you think that this statement, within certain conditions, could be a basis for a sound trading method, or just plain stupidity anyway?

donaldduke · Nov 27, 2009

You missed the bit about doubling up..

mb325 · Nov 27, 2009

the second one

dealer911 · Nov 27, 2009

It's plain stupidity - if the" certain conditions" were you doubled up every time you lost and waited for it to turn positive you will wipe out within 1 month - somewhere theres a poor guy with Enron shares who tried that strategy.

donaldduke · Nov 27, 2009

ieonqutav said:
Do you think that this statement, within certain conditions, could be a basis for a sound trading method, or just plain stupidity anyway?

If you work at a bank or very large hedge fund you can improve on this basic strategy by using your resources to push the market back in your favour.

When done with with a big losing position, it is known in the industry as the 'Leeson Gambit'.

shadowninja · Nov 28, 2009

"Get your profits, let your losses turn into profits"

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