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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Len who wrote (797)	7/8/1998 2:19:00 PM
From: jawd	Read Replies (1) \| Respond to of 1729

Thanks Len, We all thought it was gambling!! :-)))) But the bit about not trying to make up for the loss next day is so true. Keeping mental track of losses or gains will mess us up. Either we'll feel that the profits allow us to take more risk; or we'll feel that because we're behind, we've gotta take more risk to get it back. Either way - its a no, no. All the best and thanks again!

To: Len who wrote (797)	7/8/1998 3:39:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 1729

Good post. This post of yours along with other recent posts such as the one from another poster on how he manages to limit drawdowns to 1/8 in his day trading are two good posts about the risk involved in trading. I think more time needs to be spent here on the risk side of trading. This can be in a positive way, such as providing details on how a trader manages the risk of the trade. This can include a quantitative analysis of the profit to risk of a trade. IMO it is very important for the trader to be aware in quantitative terms the downside risk of a trade and compare that with the profit potential based on price targets set for the trade. Otherwise IMO it is "flying by the seat of your pants" trading which in the long run never works out. Bob Graham