The very successful traders I’ve known are very aggressive. When they’re right, they press their advantage. They add to good positions or keep re-entering in the direction of their idea as long as nothing is proving them wrong. “No one ever went broke taking a profit” is not how the best traders operate. What Dr. Kiev was saying was get out of losing ideas quickly, but really milk the winners. A good trade is valid until proven wrong. Just a few more big winners make a big performance difference by the end of a year. Risk management is not just cutting losers short; it’s also ensuring that the average size of your winners handily outstrips that of the losers.Saturday 30 May 2015
THE VERY SUCCESSFUL TRADERS
The very successful traders I’ve known are very aggressive. When they’re right, they press their advantage. They add to good positions or keep re-entering in the direction of their idea as long as nothing is proving them wrong. “No one ever went broke taking a profit” is not how the best traders operate. What Dr. Kiev was saying was get out of losing ideas quickly, but really milk the winners. A good trade is valid until proven wrong. Just a few more big winners make a big performance difference by the end of a year. Risk management is not just cutting losers short; it’s also ensuring that the average size of your winners handily outstrips that of the losers.
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