Rule number 1 of trading/investing.
Updated
As I am bored to near death, I just look at random stuff from time to time, and let me post about trading rule #1.
You could call that a motivational post I suppose.
PRESERVE CAPITAL.
And do you know what trading rule number 2 is? Re-read rule number 1.
Sure maybe the ranges can be traded but unless you are 100% sure and a strategy that worked over and over and over, don't bother.
Even with a guaranteed strategy, I bet there is a risk of an explosive move at ANYTIME. So even if you just trade the range once twice then stay away to avoid taking that move against you it might actually explode before?
Nothing is better than trading trending pairs (or stocks or crypto's). Maybe you can make quicker money on flash crashes buying dips, I still prefer going with trends, just nearly guarenteed wins if you don't join last :)
(I have no idea who most of these people are)
"Most investors focus on how much they're going to make rather than how much they could lose. Our focus is on the downside" Marc Lasry
"Safety. Considering the downside is the single most important thing an investor must do. This task must be dealt with before any consideration can be made for gains" Irving Kahn
“Don’t focus on making money, focus on protecting what you have” Paul Tudor Jones
“An investor is more likely to do well by achieving consistently good returns with limited downside risk than by achieving volatile and sometimes spectacular gains but with considerable risk of principal. An investor who earns 16% annual returns over a decade, will perhaps surprisingly, end up with more money than an investor who earns 20% a year for nine years and then loses 15% the tenth year” Seth Klarman
“An investor needs to do very few things right as long as he avoids big mistakes” Warren Buffett
I want to quote Phil Town but on this all he does is quote Warren Buffet.
"A very important data point for me is to try to avoid permanent loss of capital" Mohnish Pabrai
"Look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones."Joel Greenblatt
^ Oh this is my trading system summed up XD
"Watch out for the downside. Don't worry about the upside" Jim Tisch
"We prioritize the avoidance of catastrophic loss first and foremost and focus on potential gains second" Zeke Ashton
(See my post on the 2015 EURCHF mega drop that wiped up several brokers and legions of "hedge" funds)
“Capital preservation is always far more important than capital enhancement” Seth Klarman
“The notion of understanding the first rule of life is important: don’t lose money” Mario Gabelli
"Return of capital is more important than return on capital" Mohnish Pabrai
I wonder if bad traders prefer sideways markets, since it is more random and some of them with luck might end up not losing for the first time in their lives?
You could call that a motivational post I suppose.
PRESERVE CAPITAL.
And do you know what trading rule number 2 is? Re-read rule number 1.
Sure maybe the ranges can be traded but unless you are 100% sure and a strategy that worked over and over and over, don't bother.
Even with a guaranteed strategy, I bet there is a risk of an explosive move at ANYTIME. So even if you just trade the range once twice then stay away to avoid taking that move against you it might actually explode before?
Nothing is better than trading trending pairs (or stocks or crypto's). Maybe you can make quicker money on flash crashes buying dips, I still prefer going with trends, just nearly guarenteed wins if you don't join last :)
(I have no idea who most of these people are)
"Most investors focus on how much they're going to make rather than how much they could lose. Our focus is on the downside" Marc Lasry
"Safety. Considering the downside is the single most important thing an investor must do. This task must be dealt with before any consideration can be made for gains" Irving Kahn
“Don’t focus on making money, focus on protecting what you have” Paul Tudor Jones
“An investor is more likely to do well by achieving consistently good returns with limited downside risk than by achieving volatile and sometimes spectacular gains but with considerable risk of principal. An investor who earns 16% annual returns over a decade, will perhaps surprisingly, end up with more money than an investor who earns 20% a year for nine years and then loses 15% the tenth year” Seth Klarman
“An investor needs to do very few things right as long as he avoids big mistakes” Warren Buffett
I want to quote Phil Town but on this all he does is quote Warren Buffet.
"A very important data point for me is to try to avoid permanent loss of capital" Mohnish Pabrai
"Look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones."Joel Greenblatt
^ Oh this is my trading system summed up XD
"Watch out for the downside. Don't worry about the upside" Jim Tisch
"We prioritize the avoidance of catastrophic loss first and foremost and focus on potential gains second" Zeke Ashton
(See my post on the 2015 EURCHF mega drop that wiped up several brokers and legions of "hedge" funds)
“Capital preservation is always far more important than capital enhancement” Seth Klarman
“The notion of understanding the first rule of life is important: don’t lose money” Mario Gabelli
"Return of capital is more important than return on capital" Mohnish Pabrai
I wonder if bad traders prefer sideways markets, since it is more random and some of them with luck might end up not losing for the first time in their lives?
Note
Trading view needs a volatility indicator (that actually works).Maybe hedge funds need to create some volatility to avoid going out of business.
I have no idea historically for how long the volatility stayed non existant.
Hope it is not a year or more...
dailyfx.com/algorithmic-trading/2016/03/21/Confessions-of-an-FX-Hedge-Fund-Trader.html
Note
" Just because you’re managing $14 billion dollars opposed to $1 million dollars doesn’t mean you’re not going to fall under the same pitfalls."Sorry to disagree...
I would be way more careful and diversified with $14 bil XD
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