Risk isn’t something to fear, but to manage. Michael Covel obtained some good insight on risk his documentary Broke: The New American Dream. You won’t hear these insights on risk everyday in the MSM. Most of the stories with sizzle have to do with someone being reckless – something Jonathan Hoenig speaks to in this clip.
Most professionals traders/prop traders who’ve been around for a long time know that successful trading is about keeping your losses small, not betting or gambling, nor taking excessive risks. Good trading is boring.
Most start out just like Larry Hite suggests – by being able to answer the question, “what are you comfortable losing?”
Jonathan Hoenig and I were at Trader Monthly together and he now is a regular panelist on Cashin’ In on Fox.
David Harding is a successful CTA who runs Winton Capital in London.
Larry Hite founded Mint Investments and was featured in Market Wizards.