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Strategies & Market Trends : LindyBill's Ballroom -- Ignore unavailable to you. Want to Upgrade?

To: OZ who wrote (14)	9/29/2001 3:50:28 PM
From: LindyBill	Read Replies (1) \| Respond to of 248

Trading with the eyes open and reacting to what one is seeing is so much better than just hoping the pain will go away any time That is where I am at now, Oz.

To: OZ who wrote (14)	9/29/2001 10:23:03 PM
From: Mathemagician	Respond to of 248

FWIW, a good deal of my risk management strategy is borrowed from Trader Vic. His books have their good points and bad, but I can say without a doubt that the capital management strategy laid out therein is elegant and simply brilliant. For example, by always limiting potential losses to at most 5% of available risk capital, you can be wrong in 13 consecutive trades before losing 50% of your available capital (txns and tax benefits roughly cancel). A 3% limit buys you 23 bad trades before your 50% haircut. Hell, I've lost 50% of my capital in ONE bad LTBH position! dM