TradersCALM - Calm Trading:Serene Secrets
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Serene traders have usually puzzled out that reward to risk ratios usually increase as you move down the following list:
trend-following a single instrument,
trend-following a spread,
market making a single instrument,
market making a spread,
combining two profitable and complementary trading systems.
So some of the more useful techniques/concepts which can be used to increase reward to risk ratios include:
back-testing by hand, a confidence case-study,
contingency planning, risk of ruin,
position sizing, service concepts,
patience, keeping sight of the target,
use of volatility, market path,
key market behaviour: time and price based market persistence,
spreads, trading edge.
Show me more secrets of serene trading.
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Risk of Ruin