No, it’s not what you think, it’s not your next losing trade. Assuming we have done our homework, the size and frequency of our upcoming losing trades are rather accurately well-known in advance from our tests. (You have run your tests, and you know your numbers, right?)
The real risks of trading are lurking elsewhere… internet and market connection issues, Windows or trading platform issues, human errors, emotions not kept in check, black swan events, etc. etc. etc. We had, in fact, a full webinar on this topic a few years ago, it’s all on youtube, worth looking it up!
Remember, Remek! traders distinguish themselves from the crowd in several crucial ways, one being by thinking about risk the right way!
