May 01 2007
Risk management
When I started learning to drive, the middle-aged man sat to my left (HK drives on the right side) insisted that I stepped on the brake, “just try it … once.” he begged. Then learning downhill ski, the first thing the season-faced instructor taught us was how to stop. Call it exit strategy or risk management. In trading you need it too, foremost, far more crucial than the entry, because when the money is on the line, you tend to be emotional. In the heat of a battle, keeping cool is hard.