DislikedI'm forming some analogies in my mind to what I perceive as your concepts. Do they make sense?
I misunderstood what you meant by this at first, thinking that you meant trading more currency pairs. Now that I've actually read all your posts, diversification seems more akin to "re-balancing" in a mutual fund portfolio. In mutual fund investing, you invest in a diverse set of funds, say 6. Some stock, some income, some bonds, some cash. You allocate capital to each investment based on beta, risk, etc. Every quarter you review...Ignored
Thank you for excellent questions. I try my best to answer.
1. I read this three times and was amazed. Yes. And this happens not just in finance.
2. Yes, all correct. I personally dont know bajillion books but it has my interest now. In my personal view high probability systems with lower r:r is a long road of frustration. Im sure there are many successful traders doing this and I wish them well. It will be a different kind of stress level. In forex there are so many long term trends currently starting now, in the middle, or changing. All we need to do is participate. The power of growth starts from participation.
40% loss is fair amount but im assuming some of them are hopefully BE. There is a surprise that awaits all long term position builders. Even though we can blissfully work out how much we can potentially make from our existing positions, at the end it will be so much more on the table and you wouldnt be bothered working out why.