There are three important elements in #trading (in somewhat ranked order):
1. Having a true statistical trading edge(s).
2. Avoid behavioral mistakes (having a good trading mindset).
3. Have proper risk management.
#riskmanagement #risk
1. Having a true statistical trading edge(s).
2. Avoid behavioral mistakes (having a good trading mindset).
3. Have proper risk management.
#riskmanagement #risk
What is most important in trading?
Having a statistical #edge is the most important.
No trading mindset and/or risk management can ever replace a true statistical edge.
quantifiedstrategies.com/psychology-ove…
Having a statistical #edge is the most important.
No trading mindset and/or risk management can ever replace a true statistical edge.
quantifiedstrategies.com/psychology-ove…
The second most important is avoiding behavioral mistakes.
If you don't do what you should, then you most likely have no statistical edge.
No backtest can ever capture your overriding of the rules.
quantifiedstrategies.com/the-most-commo…
quantifiedstrategies.com/how-to-overcom…
#behavioralmistakes
If you don't do what you should, then you most likely have no statistical edge.
No backtest can ever capture your overriding of the rules.
quantifiedstrategies.com/the-most-commo…
quantifiedstrategies.com/how-to-overcom…
#behavioralmistakes
The last bit in the trading puzzle is "risk management".
Risk management is basically all about avoiding loss of capital.
What is the easiest and best way to reduce risk?
1. Trade small.
2. Add diversification.
quantifiedstrategies.com/stop-loss-pros…
quantifiedstrategies.com/correlation-in…
Risk management is basically all about avoiding loss of capital.
What is the easiest and best way to reduce risk?
1. Trade small.
2. Add diversification.
quantifiedstrategies.com/stop-loss-pros…
quantifiedstrategies.com/correlation-in…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
