Be open to learning new things and new ideas. They can lead you to garner insight on your trading.
We make our money as traders in position sizing. I use position sizing to be analogous with risk management. I can always move my entries and exits to accommodate my trading size.
It’s the effect of volatility on my position that determines my open trade equity - which can be positive or negative.
If the dollar-volatility of the instrument you’re trading is large than your risk unit, you might have to pass on that (and several other) instrument. If the daily vol on a gold contract is $4,000 and you only want to risk 1/2% on a trade on your $200,000 account, gold is too volatile for you to trade.
If gold’s daily vol is $40, then the dollar volatility is $4,000. You can change that. Trying to trade gold within the range of the normal vol and only risk $10 per ounce will likely get you stopped out for a loss much more frequently as the vol is non-directional and random on any given day.
You can't change the vol anymore than you can change someone's personality or behavior.
Free audiobook - Listen to your Inner Voice
