Risk and learing how to lose
The amateurs miss the point. This is not about the best stochastic settings or how to massage the bid and the ask. This is about facing up to the very real risks inherent in the financial markets, including the very real risk of financial ruin. Amateurs don't see the risk; therefore, they don't bother to grapple with it. Instead, they would rather blow up and disappear. If one wants to last, he must come to terms with the nature of risk, his own tolerance for risk, an understanding of how to manage risk. Without that, he's doomed.
A great many traders don't know how to lose. They've never come to terms with the fact of it, much less the inevitability of it. Therefore, they have trouble handling it, or can't handle it at all. And that creates a multitude of problems, from entering too late to exiting too early to betting too much to betting too little, all with at least a low-grade fearfulness permeating everything.
Learning how to lose doesn't make you a loser. It's a critically important step toward becoming a winner.
DB Quote
The amateurs miss the point. This is not about the best stochastic settings or how to massage the bid and the ask. This is about facing up to the very real risks inherent in the financial markets, including the very real risk of financial ruin. Amateurs don't see the risk; therefore, they don't bother to grapple with it. Instead, they would rather blow up and disappear. If one wants to last, he must come to terms with the nature of risk, his own tolerance for risk, an understanding of how to manage risk. Without that, he's doomed.
A great many traders don't know how to lose. They've never come to terms with the fact of it, much less the inevitability of it. Therefore, they have trouble handling it, or can't handle it at all. And that creates a multitude of problems, from entering too late to exiting too early to betting too much to betting too little, all with at least a low-grade fearfulness permeating everything.
Learning how to lose doesn't make you a loser. It's a critically important step toward becoming a winner.
DB Quote
Last edited: