weekend thread early... topic: risk management, page-19

Robbb, I completely agree with your thoughts. A simple system that gives you high probability of a goal is all you need if you have good risk management. The hardest part I have found is taking profit at a appropriate level. To do that you have to know how far something is likely to move so knowing your setups is pretty important. If you have a 1.5/1 risk reward ratio but can get 70-80 percent winners then you will be doing well. If I have a target and the market looks like blowing through it after I have entered, I will cancel my target order and try to place my stop at the level and attempt to let it run. It is a bit of an art but reading the market isn't pure science.

One of the reasons I look for "low overlap markets" is if I get the entry right, I can let a trade run a long way without it threatening to take out a break even stop. A couple of good runners does nice things to an equity curve.

A lumpy equity curve isn't a bad thing so long as the lumps point upwards :)

Appreciate people jumping in with their thoughts. Exactly the type of discussion I was trying to start.