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Problems with “risk free” trading

  • It is hard to understand if it is an aberration or the new rule. Many people go down with the ship or by the time they find the advantage it disappears.
  • Risk always catches up with you.  Not realizing risk does not mean the absence of risk.
  • Career traders look for things they can repeatable do.  Learning is where the pressure comes from.  Learning is does not  factor if you are relying on Pavlovian responses.
  • Not every trade is the same.  You can never learn how to trade larger risking the same dollar amount.  The dollar amount you are down is more important of a factor in position size than market conditions.
  • All “risk free” trading is backward looking.  It is relying strictly on what happened in the past and those successes.  If the regulatory bodies got one thing right it is the standard disclaimer that most people ignore, “Past results are no indication of future performance”.