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I would happily make money for n-years and lose for one, provided the amount lost was a fraction of what I earned.
by Timmah 8y ago
I would happily make money for n-years and lose for one, provided the amount lost was a fraction of what I earned.
- speedplane 8y ago> I would happily make money for n-years and lose for one, provided the amount lost was a fraction of what I earned. Your caveat there often swallows the rule. Many bet on the market and make big bucks only to lose multiples of it later.
- Timmah 8y agoYeah irresponsible people do. But it's not necessary to bet the farm to make a living. Although it's certainly easier to eke a living off a $600k bankroll than a $50k
- speedplane 8y agoMany hedge funds and active traders do this every day. Maybe they're irresponsible, but they're the norm.
- 88 8y agoIt’s different when it’s someone else’s farm.
- topmonk 8y agoIf you set up a stop loss you could make it impossible to lose a huge enough amount on a single trade to wipe put the profit on your prior ones.
- bboreham 8y ago“Stop-loss” orders don’t work perfectly. If the entire market has gone South, you can lose a lot more than your stop-loss says.
- blibble 8y agoall stop losses do is create an order when a certain condition is met (e.g. last trade price is below X) there's no guarantee it will be created immediately, execute at all, and if it creates a market order you might very well not like the price it does end up executing at