If you’re not doing this, you’re playing the game completely wrong.

28 Nov 2024 · 0 min

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0:24

In this brief segment, the speaker argues that effective trading hinges solely on managing downside risk. He emphasizes that while traders can employ probabilistic strategies, they cannot reliably predict upside moves. Consequently, achieving perfect accuracy in controlling losses is essential, and neglecting rigorous risk management means playing the trading game incorrectly.

I think with trading, the only thing that you can truly manage is your risk management and is the downside. So if you're not doing that to the best of your abilities, then I think you're playing the game completely wrong. There's no way of us predicting what the upside is going to be. It's impossible for us to predict those future moves. Obviously, we have a strategy that has probabilities, but we can manage our risk to 100% of 100% accuracy every single time. So we have to make sure we're doing that.