Comments on: Money Management: The Holy Grail of Trading http://dailyreckoning.com/money-management-the-holy-grail-of-trading/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Sat, 11 Feb 2012 03:39:16 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Mike O'Connor http://dailyreckoning.com/money-management-the-holy-grail-of-trading/#comment-29658 Mike O'Connor Fri, 02 Oct 2009 00:35:27 +0000 http://dailyreckoning.com/?p=18695#comment-29658 This seems to be more than a bit naive in that it does not disclose the fact that a stop tighter than the target means decreased likelihood of a win. One can't blithely confer reduced losses upon oneself, in the mind, by operating with a tighter stop--- the benefits are generally canceled by the increased frequency of losses. This seems to be more than a bit naive in that it does not disclose the fact that a stop tighter than the target means decreased likelihood of a win.

One can’t blithely confer reduced losses upon oneself, in the mind, by operating with a tighter stop— the benefits are generally canceled by the increased frequency of losses.

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