7 April 2009

My early short trade was stopped out for a loss today.

Here is an example of the asymmetric effect

The money management rules permitted me to take 2 contracts, so the loss ended up being almost as large as some of the recent wins when I was trading just 1 contract. 

Going from 1 to 2 contracts is the time when the asymmetric effecis at its most extreme, and it can present quite a barrier.

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