"The primary goal of every trader must be to control and limit risk. If the risk of a trade is properly handled, the rewards will follow. "
-- Winning the Day Trading Game, Thomas L Busby,
Chapter 7 "Worry about Risk, the Rewards Will Come"
When I first read this statement, it sounded like a cliché.
I read it again... there seemed to be more to what it sounded.
I read it again... well, how can you defend your way to success?
Hm... sounds familiar...
In sports, great offence win you a game, great defence win you a title... a great striker win you a game, a great CB win you a season...
Know what are the risk and what I might lose...
Brazil football team used to be known for their "offence is the greatest defence" philosophy. Even then, it involved risk management, i.e. they knew even if they conceded goals, they could score more to make it up. It's calculated. It's not reckless.
No comments:
Post a Comment