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>Probability is only part of the picture. And because option strategies are
>so hard to backtest they can be very misleading. If 90% of the time you make
>$100 and 10% of the time you lose $1000, this obviously isn't a very good
>strategy. Probability numbers are meaningless without $ attached to the
>win/loss percentages.
That's absolutely the truth 100%. That's why even the best systems or
strategies will not work if your MONEY MANAGEMENT and RISK assessment isn't
in check. It is absolutely more intelligent to give up "opportunity of a
lifetime" for the simple reason that the associated risk is not in your
favor. Discipline is the key. And there will always be another trading
opportunity -- if you've got the money to take advantage of it! Praying
besides the terminal DOES NOT work in this field... And winning once using
an undisciplined strategy will not protect you from the odds over a large
enough statistical sampling of trades.
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