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RT's,
A recent post by our fellow member Dr. OEX was interesting to me.
Especially the last part. I wrote to the Doc and I'm awaiting his reply if
any until then I would like to ask you for your opinions on what this is
about and how this applies to world class traders being able to trade more
successfully then lessor traders. If follows:
Brent
I'm of the opinion that there is actually a TRADING SECRET used by the best
traders in the world. I think they all share a common....uncanny ability.
They
don't feel secure about there ability to complete winning trades. They
don't
really know how to make money. Their ability is their superb ability to
NOT
LOSE money. I firmly believe their ability is analyzing the risk reward of
any
trade. They don't know how to get rich..THEY DO KNOW HOW NOT TO GET POOR.
A
huge difference.
Peter Lynch has it.
George Soros has it.
Warren Buffet has it.
I could go on
I am yet to meet a world class trader who was really ever made a trade that
they couldn't justify as an excellent risk reward.
The mistake commonly made by "less than world class" traders is they
measure
risk with a naive view of possible loss based on a stop. It astounds me
how
many traders repeatedly enter into trades with a risk/reward based on a
stop as
opposed to some "series of expected outcomes."
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