Risk Management for Idiots

So as per my last post if traders should not be their own risk manager then who should be?

Your spouse, mentor, or anyone who will take the time to understand what it is you are trying to do. Someone or something must stop you before you hurt yourself. If you can't find another human to stop you maybe you should try the Solfest Risk Management for Idiots System. It's free for all my loyal subjects.

Here it is:

If I have 2 winning trades in the bank I'm done for the day. If I have 2 losing trades in the bank I'm done for the day. Break evens don't count. The risk reward built into my trades handles the rest. In other words I can have a 50% win rate and still make good money.

That's it. I guess I can still break the rules if I want to but it's a very obvious breach of protocol. If I can't follow it I should be fired, or beaten with a stick, or taken out behind the barn and shot, or, you get the picture.

The object of the system is to avoid the blow up days and the give it all back days. Of course I will also miss the I am the greatest trader in the world days. My tendency for revenge trading is my biggest weakness and this system shuts me down before I can hurt myself.

1 Minute Crude Oil Chart

1 Minute Soybean Chart

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