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Dear Stan,
I'm sure you mean well when you advise to "limit yourself to a specific dollar
risk on every trade" but I think that may be one of the worst things to do.
Using a specific dollar risk is not a viable way to trade. When you do this,
you are assigning an arbitrary dollar amout and using it as a stop.
Don't you think it makes more sense to determine where the market should not
go, determine the dollar risk if it does go there and then deciding whether you
can afford to do the trade?
This makes a lot more sense then arbitrarily picking a dollar stop.
Regards,
Manning Stoller
Stan Katz wrote:
> I recommend the following books about trading (as opposed to technical
> analysis): "Computer Analysis of the Futures Market" by LeBeau and Lucas;
> "Street Smarts" by Connors & Raschke; "Trading for a Living" by Elder. If
> you want to learn about Technical Analysis, try "Technical Analysis of the
> Futures Markets" by Murphy. Avoid other peoples' systems; don't try paper
> trading; and concentrate fully on how much you have at risk (and limit
> yourself to a specific dollar risk in every trade) instead of concentrating
> on how much you can win.
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