G'day Andrew,My aim at the moment is to come to grips with...

G'day Andrew,

My aim at the moment is to come to grips with risk/reward or "money management" as it is often called. I tend not to use the term "money management" as it is often misunderstood.

Like many things, an understanding starts by looking at the extremes and then formularising back from there. The extreme case that makes risk/reward understandable (to me, anyway), is:

If you have a system that is correct 99% of the time and you "bet" your entire fortune using this system then at some point you will go broke.

Sounds simple, doesn't it?

I'll let you know when I have it all nicely tied up in my head :)

We'll get there yet, Andrew. Mind you, the way CST is opening this morning I may not need to bother. LOL.