Aug 22, 2008

Summary

Be the casino, not the gambler! Remember, casinos are just very rich statisticians!

Drawdown is a reality and WILL happen to you at some point. The less you risk in a trade, the less your maximum drawdown will be.

The more you lose in your account, the harder it is to make it back to breakeven.

Trade only a small percentage of your account. The smaller the better. 3% or less is recommended.

It is desirable to trade when you have a high risk to reward ratio. The higher the ratio, the less you have to be right.

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