Successful traders: Risk Taker or Risk Averse?

February 24th, 2013, 02:12 PM

''Risk Taker or Risk Averse?'' - Both

If you are feeling well and you'r equity cure goes up, you should take more risk to maximize you'r winning trades

If you'r equity curve goes down, you should take less risk

February 25th, 2013, 10:43 AM

Yuri57

Sure, it's called a stop-loss.

That only gives you protection on one trade. It never tells you how many losing trades in a row you will experience.

there's two ways to be an ultimate loser in trading: (1) you get wiped out on a single trade, (2) your account balance dwindles on lots of losing trades that are not recovered by the winning trades

Quoting

And I only intend to take a risk when odds are highly in my favor. That's the whole point of trading.

Yes indeed. no arguments from me on that.

March 7th, 2013, 01:00 PM

Quote from an article by Brett N. Steenbarger, posted by @djkiwi in another thread (

Highly Unusual Suggestion

No problem, here you go. It's public info.

Three Dimensions (3D) Trader Personality Quiz

Brett N. Steenbarger, Ph.D.

When traders run into emotional difficulties with their trading, they often assume that they have deep, dark, underlying …

):

I have seen very few successful traders who were highly risk-averse. The risk-averse trader, particularly who is high in neuroticism, is motivated more by a fear of loss than a desire for gain. This makes it difficult to sustain meaningful position sizes during promising trades. Often such traders berate themselves for being self-defeating or sabotaging, but the reality is that they might be better suited for investing than trading.

Successful traders: Risk Taker or Risk Averse?

Discussion in Psychology and Money Management

Successful traders: Risk Taker or Risk Averse?