I am surprised to see only 30% to money management. Majority of the time goes in deciding which system to follow which has so less weight (10%) in overall trading. This is really good representation.
I always maintain you can take a tip from anyone (chai walla, fortune teller, carpenters, CNBC analysts, fund manager etc). All of them have the same probability of success.
You will make money only because of (a) risk management and (b) your ability to cut losses fast and hold profitable positions as long as possible. The latter is psychology and is difficult for most people.
So sir the thought comes to mind is,one can use mechanical system which will have strict risk management rule (0.5%)- Buy automatically above certain level and SL at certain level with risk per trade of less than 1%. Software can do the job for us to remove emotions.
I am surprised to see only 30% to money management. Majority of the time goes in deciding which system to follow which has so less weight (10%) in overall trading. This is really good representation.
ReplyDeleteI always maintain you can take a tip from anyone (chai walla, fortune teller, carpenters, CNBC analysts, fund manager etc). All of them have the same probability of success.
DeleteYou will make money only because of (a) risk management and (b) your ability to cut losses fast and hold profitable positions as long as possible. The latter is psychology and is difficult for most people.
So sir the thought comes to mind is,one can use mechanical system which will have strict risk management rule (0.5%)- Buy automatically above certain level and SL at certain level with risk per trade of less than 1%. Software can do the job for us to remove emotions.
DeleteYes...
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