Mar

20

“It is better to set wide perimeters for profits than to take the quick profits.” (Duncan Coker)

Is this true as well in volatile markets, in that volatility tends to cluster? Isn’t it prudent to trade smaller (your profits will be the same over shorter periods with higher ranges, as will risk of extreme loss) or analogously shorter? Consider that many participants have been mortally wounded and are trying desperately to get back to even, do or die. If you have not been mauled in this way maybe there is a current advantage to slow and steady.

Like in motocross, the answer is different if you are trying to win the race rather than just finish well. There are lots of racers who will crash in the bumpy downhill section of the course. And perhaps you don’t mind being one of them if that’s the risk it takes to win.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search