I’m sure you’ve heard by now, JC Parets has a technical analysis podcast. Last week he had an interview with 40+ year veteran Peter Brandt.
There was an awesome back and forth and few comments from Peter on risk management that I just had to highlight.
PB: My capital is my inventory and I want to protect it aggressively and with vengeance
JC: …’The 1 guarantee we get in markets the future is more opportunities’
And here’s two more comments from Peter:
‘My historical win rate is not much over 40%. My default expectation is my next trade will be a losing trade’.
‘When I feel like 1 trade will make the difference in my career, I know i’m in huge trouble’.
The point is there is no need to try to bank on any single trade or idea. If your trade goes past your sell point, then oh well, on to the next one.
Successful trading isn’t impossible, but if you put success on a pedestal you’re only making it likely you’ll fail.
Any carefully thought out risk management method can work if you don’t sabotage yourself.
The podcast was a great listen with plenty other insights and current market takes. Trade ’em well.