Certainty Is an Illusion

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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Euler
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Nice summary of risk - Certainty Is an Illusion http://www.farnamstreetblog.com/2014/05 ... -illusion/
marko236
Posts: 737
Joined: Fri Jul 12, 2013 11:54 am

I like this article, i do all my risks on percentages on high risk i'm looking to use small money but get a large return but also looking to get out with a small loss quickly.

Medium risk i'l use a larger stake and try and make a good return but again i'l look to get out with a bit higher loss than high risk.

If you get your percentages right on risk reward you have cracked trading.
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Euler
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Location: Bet Angel HQ

Risk is one of the things that stop a lot of people making money trading, but I learnt it was the think that would make me money.

Even if I'm an idiot I will get +ve trades, so I need to maximise them and minimise the mistakes or failed trades. I've managed to get better and better at this so my returns seem outsized now from the risk I take.
Kalumpus
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Joined: Wed Mar 27, 2013 12:04 pm

If a trader/gambler develops an edge, & that is proven over thousands of markets then surely the certainty that he will win is more than illusionary, its certain. Certainly not impossible. Just as a gaming machine or casino operator is certain to win, because they too have an edge, they are not taking a risk - more certain than illusion!


Many things in life are more certain than illusion. :)
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