Margin of Pain

Archive

trend following

May 29 Larry Hite and the Bet Small Enough to Lose Larry Hite's risk lesson is simple and hard to live with: the trade has to be small enough that being wrong does not become the event. May 28 Tom Basso and the Trade That Lets You Breathe Tom Basso's old lesson is not that trading should feel exciting. It is that the system has to be boring enough to survive the next 10,000 trades. May 28 Ed Seykota and the Trade That Does Not Care If You Are Right Ed Seykota made trend following sound simple, then spent years pointing at the part traders avoid: the feeling that makes them break the rule. May 27 The Turtle Rule Was Not The Breakout The famous Turtle entry gets all the attention. The trade only worked because size, volatility, exits, and boredom were part of the rulebook.