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Trading to me is like a fight. Risk is involved in the same way and porportions.
In the fight it is the risk of injury and pain (the body on the line) and in
trading, it is the risk of injury and pain of loosing ($'s put up). Mark Brown's
sugestion was to go gambling with small bets, over and over, just placing bets,
win or loose. This gambling drill is a really good example of the same risks and
same emotions that need to be dealt with. It would allow you to view them within
yourself and be able to potentially resolve them. Anything that puts you "in"
(called Risk) the situation that trading does, will be a drill and will help.
Like in the fight, the bigger and more competent (you know) you are than you're
opponent, the less risk.
In trading, the richer and more competent (you know) you are, the less risk. So
the deck is stacked against the new trader always.
The key point in the above example is (you know). You may not really be more
competent or bigger or rich enough but that is a state of mind, what you think
of yourself, not necessarily a real world fact. It must be there to manage the
risk you are exposing yourself to. Too much of the (you know) factor and it
becomes reckless overconfidence. The risk looks minor and "easy". BITE-ouch!,
$20 grand loss! Well back to "smaller, incompetent and poor".
All of it is a balance within the trader himself. This true management of Risk.
Whether you are following a system or following nothing at all, this Risk
management must exist within.
See U
Tom
planeacres@xxxxxxxxxxxxxxxx
What can you take with you when you're dead? That is the Question.
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