Eliminating the Risk of Ruin When Trend Following

By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical.” Larry Hite.

This is Larry Hite’s suggestion. I suggest even less. Think in terms of the next thousand trades. Thinking in this manner will help you to be indifferent to inevitable trading loses.

Most traders do not think in this context. If you want to stay in the game of trend following consider risking 1% or less on any trade. Do not worry about making money….focus on defense. What has happened to me personally is that most trades will incur small profits and small loses and rare …rare big winners.

Past performance is not indicative of future performance…

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