Greetings cat. In December, I have read the entire thread, and took many nuggets of wisdom from it in one file.
This issue about risk managament is very well explained in "PRINCIPALS AND PSYCHOLOGY OF DAY TRADING" by George Slezak, a short 48 page material by one of the former floor day traders. (to anyone interested in this, use google, easy to find - one of my favourite, written by true trader). While position trader would use one lot, because his risk is big, scalper will use 20 lots, because his risk is small. Took me a while to understand this. One of the reason many fail is also switching loosing day trade to "position". I have seen this with other traders too many times.
Slezak: If you convert a scalp or day trade into a position trade, by definition you did not consider the risks of the trade.
Disliked... Many relatively inexperienced traders risk way too much per trade for the size of their account, because they are entering trades on time frames that are too big for their account size, mistakenly believing that the larger the time frame, the easier it is to trade, when in fact the opposite is true. ...Ignored
Slezak: If you convert a scalp or day trade into a position trade, by definition you did not consider the risks of the trade.
Hope is dangerous in this game.
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