Sunday, March 20, 2011

how to go broke despite talent!

"amateurs go broke

by taking large losses,

professionals go broke

by taking small profits....

The problem in a nutshell is that

human nature does not operate to maximize gain

but rather to maximize the chance of gain.

The desire to maximize the number of winning trades

(or minimize the number of losing trades)

works against the trader.

The success rate of trades is the least important performance statistic

and may even be inversely related to performance."

- william eckhardt

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