Larry Hite – Turned a $2 million managed account into $800 million in 8 years.
Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you. If you argue with the market, you will lose. It is incredible how rich you can get by not being perfect. Never risk more than 1% of your total equity in any one trade. By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical. I have two basic rules about winning in trading as well as in life:
- If you don’t bet, you can’t win.
- If you lose all your chips, you can’t bet. Frankly, I don’t see markets. I see risks, rewards, and money.