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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
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WOW. Amazed that finance students/professionals would perform that badly. Love the conclusions.
Probably good reading for most traders. Unfortunately trade sizing is really a function of probability/statistics, which is often something many are not good at.
Yes i find it more interesting that.. sometimes we trade just out of boredom..our brain seeks action and dopamine.. excitement of being right and anger of being wrong.. both🙂, so i am doing since months an experiment .. take crazy and wild trades on TV and more measured moves on NT Sim in parallel..its working so far but interesting would be when i will switch to NT Live🙂 lets see ..however excel here in the thread was an eyeopener .. u can only bet x% for saying long in game.. its about staying long .. focusing on process, results will be a side effect..( easier said than done lol)
What an opportunity trading presents to us to look inside our mind.. all spaces .. glad to have it🙂
This is a nice illustration of the importance of money management. In Ryan Jones' The Trading Game there is a similar experiment with coin flip and 1:2 risk-reward. Heads - you lose $1, tails - win $2. Depending on the percentage of capital you risk on each flip the end result is vastly different. I ran similar simulation in Excel and got the same results.
In the movie Rounders Matt Damon's character makes a point. Poker, in essence, is the game of chance. However, every year it is the same ten guys sitting around the table at the world tournament final. I think trading is similar. Everyone of us is dealt the same cards, yet only a few make it, and even fewer make it big. Food for thought.
That the dominant story, isn't it? Not that he was playing a coin throwing game with his broker. Breaking the rules that were tested brings less than optimal results. I've done it myself a couple of times.
I think position sizing is most relevant (crucial) for leveraged instruments. I am not sure if it makes any difference If you're buying stocks at nominal value.
