Paul J Singh

Why do we implement them into our trading plans without investigating? 

It is because we are sheep, and it’s easier to be a follower.

Successful traders think like wolves and never follow the herd. In fact, they avoid the herd like it’s the plague.

Last summer I realized I had spent my entire trading career as a sheep in wolves clothing when it came to risk management.

For years I had steadfastly held on to the belief that you must get 2:1 on every single trade. After getting stopped out of a number of trades that initially went my way I decided to investigate the 2:1 mantra.

My research was enlightening and totally changed my attitude towards risk management and probability trading. It showed that had I taken on 1.3:1 risk instead of 2:1in rangebound markets, I would have increased my profits and win rate.

I am no longer mislead by this false risk management “truth”.

Let this be an important lesson. Never accept strategies that the herd adopts and investigate everything, no matter how nice it sounds.