67 min listen
087: What's your risk of ruin?
ratings:
Length:
8 minutes
Released:
Apr 14, 2017
Format:
Podcast episode
Description
Earlier this week I was on a flight from LAX back to Melbourne. As we were sitting on the plane waiting for our departure I overheard a flight attendant say to a fellow passenger that one of the other planes had been struck by lightning causing delays to other flights. At the time I didn’t know if a lightning strike on a plane was a bad thing, it sure sounds like something you don’t want to experience, however it got me thinking about the risks of flying. Now admittedly, it’s probably not the best thing to be thinking about just before the plane takes off for a 16 hour flight across the Pacific ocean at night but luckily my thoughts quickly switched to trading and the risks we face as traders. One of the concepts which immediately came to my mind was ‘risk of ruin’, which we first discussed way back in episode 2. In that podcast interview, futures trader Brent Penfold says: "In my humble opinion, I think the risk of ruin is number one or the most important concept in trading." I want to share a little bit more of that audio with you now, because it explains: Why risk of ruin is such an important concept for traders to understand, What traders need to know about risk of ruin, How to calculate your own risk of ruin. Plus I'll share what happens to a plane when it's struck by lightning, so take a listen. Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.
Released:
Apr 14, 2017
Format:
Podcast episode
Titles in the series (100)
020: Larry Williams talks conditional trading, what drives prices, the misuse of indicators, cycles, forecasting markets PLUS 50 years of trading insights: In this weeks episode Larry Williams talks about conditional trading, understanding what drives prices, the misuse of indicators and how to apply them correctly. We also discuss cycles, forecasting markets, what to look for in market... by Better System Trader