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Originally Posted by xtsunami
bobnat,
It is funny especially if you put things in the context of this forum where a majority seem to think the robustness of a strategy is based on the won-loss percentage rather than the management of risk-reward.
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Xtsunami,
I'm reminded of something Van Tharp wrote. He had met a successful trader who was teaching his trading methods at a seminar. It was back in the 80's and I think it was Tom Basso. VT asked him if he were afraid of having hundreds of people trading his system that it might not be as effective. The trader replied that not at all because he knew that only about 1% of them would trade it EXACTLY the way they were taught.
VT became interested and they worked for the next two years tracking people who took the trader's seminar. At the end of this time they found that less than 1% of the participants were successfully trading the system. At least 60% NEVER traded it, and the other 39% tried it, modified it, then gave up.
To address your point, I guess it's an evolutionary thing with traders. I doubt any start out thinking about money management. Most go broke, and the few that can get to the point of understanding it have a chance of surviving and making money. But considering we're all chasing the same dollar, that's a good thing in the long run.
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My goal is to be profitable even if the win-loss precentage slips to 30% or below, much less stressful than trying to be perfect.
XT
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I have also arrived at the point where I understand the need to be right has nothing to do with making money. It's amazing how much stress has been removed from my life now by this one change in my thought patterns.
Nat