I accidentally wiped out my NinjaTrader installation on my VPS this morning and am waiting for the weekend backup to be restored. Per the hosting company it’ll happen sometime during trading hours today. So no new setups today as all my charts are in deep freeze right now. In the meantime I thought it may be a good idea to go over some basic risk management concepts that, judging by the comment stream yesterday, may bode repeating:
Okay this is going to be a bit of an angry post but if you humor me for a moment I promise that your take away will be a few giggles plus maybe a valuable epiphany serving you well for the remainder of your existence on this mortal coil.
And this not just for when it comes to trading the financial markets, but in your private sphere as well. So do I have your full and undivided attention? Then read on:
Let’s not beat about the bush and call what happened during yesterday’s session as what it represents: a possible game changer. I’ve slipped in that weasly adjective as nothing in the world of trading is ever guaranteed.
However that said: Unless some miracle occurs today and the bulls drive the E-Mini back > 2750 the gist pretty much is up for the foreseeable future. Let me how you where it all went horribly wrong:
Market volatility in all shape and form has over the years turned into a personal passion and lies now at the heart of my current system development efforts. There are several reasons for this, the first most likely being one you probably have heard about before, which is that volatility appears to be a lot easier to predict than market direction. Your mileage of course, as with all things in life, may vary considerably plus as you slowly embark on peeling this onion you’ll discover there are many layers hiding below the surface.
Sunk Cost Effect
