I was feeling creative and recorded a video update about the current thoughts. Hope you enjoy this format!
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Tag: risk management
Categories
The house edge
In a casino you want to be the house not the gambler. Think of the house edge. The more people come to play, the more a casino can take advantage of its statistical positive expectancy. I hadn’t put much thought to it until couple of years ago a backtest clicked to me. A smaller edge […]
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I have taken more chips off the table
The current crisis is putting my trading system to a test just like the pandemic did two years ago. Of course, we are all worried about the happenings in the world, but when it comes to investing or trading in the markets, we can’t let emotions influence the activity, otherwise it wouldn’t make sense to […]
The title is a quote I heard from Tom Basso, a semi-retired trader featured in “The New Market Wizards” book that was published in 1992. According to his idea, risk is something you can’t get away from if you want to earn excess returns. No matter how much you try to optimize the entry / […]
Beginning traders often underestimate the importance of position sizing. However, besides stop placement it makes a huge difference for risk management. Tom Basso was featured in Jack Schwager’s New Market Wizards book that I have also reviewed here in my blog. This short ebook on why and how to size positions was published by Tom […]