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On risk and trading


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Here is an excerpt on risk and trading from Curtis Faith, the author of the popular book "Way of the Turtle":
"The word risk can be defined as exposure to the consequences of uncertainty. Many traders try to control the uncertainty or to predict it. This doesn’t work. Like trying to predict the weather more than a few days in advance, predicting the markets is almost impossible. Instead of trying to control uncertainty, master traders focus their attention on timing and position sizing of their trades. The markets and what they do are not in your control. In contrast, what you do in response to what the market does is in your control. Reaction instead of prediction. This is the way of the master trader."
Brilliant, isn't it?


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