Risk Over Rules

As traders we get paid to bear risk, so:

  • If you spend less than 80% of your time managing risk, you’re not a trader.
  • If you don’t have a risk budget, you’re not a trader.
  • If you are not consumed by thoughts of systematic risk, liquidity risk, operating risk, credit risk and the myriad unsystematic risks, you’re not a trader.
  • If you think a stop loss is risk management, you are definitely not a trader.

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