Tag: risk management

Drawdowns are like scars showing that we have survived

The stock market is not a friendly place, where everyone is guaranteed to make money by having exposure in securities. It’s a highly competitive…

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…

I have taken more chips off the table

I’m attacking the risk, not trying to avoid it

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…

Tom Basso – Successful Traders Size Their Positions – Review

Beginning traders often underestimate the importance of position sizing. However, besides stop placement it makes a huge difference for risk…

Every trading strategy has drawdowns