Where the Risk Lies
Once you have a valid trading method, you are still going to have risk. For many beginners it is not where they might think. With a proven method your risk is not from trading but from NOT trading. Regardless of how good your method is it is going to have losers. Striving for 100% accuracy in trading is not going to lead to peace of mind, but to losing your mind. So given that draw-downs will be occur, it becomes all the more important to take all the trade signals. If your system tests out with slightly more winners then losers and the winners are larger then the losers, then missing just one winner is going to skew your performance.
So when choosing a method or system to trade for yourself make sure you are going to be in a position to take every signal because in trading the signals you think are going to be the big winners may not be winners at all, and the signal you think you want to pass on can end up being the one that puts you over the top.
Jay Norris
jnorris@brewerinvestmentgroup.com