Wednesday, April 9, 2008
Make The Most Of The Best And The Least Of The Worst....
What’s the difference between reckless gambling and professional trading? For many, the answer is risk management. Many traders view risk management as critical to long-term success. You can have a crummy trading strategy, but if you have good money management, you can make money. If you have poor money management, it doesn't matter how good the trading strategy is. You're going to lose in the end. Similarly, You must have a survivability element so that if you literally wished to select stocks by throwing darts at a board, you would continue to survive market to market.
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