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Ramon,
> I partially agree with the good DR. The difference between successful
> traders and others is the ability not to lose. I disagree that this
secret
> lies in successfully calculating the risk reward of a trade. There is a
> world of difference between the two ideas.
I'm not certain that Doc was referring to actually trying to calculate the
risk reward of a trade. By the way Jonathan Matte(Sticks) has a short
article about calculating risk/reward on his site
http://www.defendercapital.com/Futures/Newt/newb_riskReward.html. Rather I
was thinking that he meant that we need to analyze risk reward so that we
consider a series of expected market movements instead of looking only at
the possible loss incurred by a single event. It might be a matter of
perspective, in other words the super traders are able look at a broader
range of outcomes as opposed to a short term risk.
> ...........not a wit if the market does not do what my scenarios says it
> should. At that point I exit the position as best I can. The POP said
> it much better - when you put on a trade assume a trade is
> wrong and unless the market proves the trade right, you exit.
Yes, I am familiar with Phantoms rules, and I respect them highly. That one
rule could save many new traders a fortune. I know it would have done so
for me.
Brent
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