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

[ieonqutav]

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

 

[donaldduke]

You missed the bit about doubling up..

 

[mb325]

the second one

 

[dealer911]

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]

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]