Some insights after 18 years of trading

As investors in the market, it is important for us first of all not to lose money and only then to make money. This desire stems from our natural and primary instinct, whose sole purpose is to protect us from existential dangers.

We all know that trading in the market involves risks and therefore the possibility of losing money exists whenever we buy a stock. Loss makes us feel fear and fear makes us eventually run away.
If we were now crossing the road and we would see a car approaching us quickly then naturally we would feel afraid and we would run fast and escape from the car.
This instinct when it appears on the road can save our lives.

Unfortunately, when it appears while trading in the market it usually causes heavy losses as we all know and have experienced it in the past at some level or another.

The bad news is that it is almost impossible to avoid the impact of fear on us when we trade in the market. All of our understanding disappears when we see that the amount of money in our investment account is falling and not rising …

The good news is that there is a solution and it is basically simple.
The solution is to significantly reduce the chance that our trading account will reach a point of loss which will make us make decisions out of fear.

Here’s how I think we can do that in C2:

  1. Decide how much money we want to invest in the market.
  2. Decide how much we are willing to lose before we stop following the strategy.
  3. Very important - actually investing only half of what we intended to invest. The reason is that when the moment of truth comes, we find that the amount of money that we are really willing to lose before we give up is usually only half of the amount we thought when we started to follow the strategy, so we will initially invest only half the amount we originally intended to invest.
  4. We will add the balance only after we see a profit of at least half the amount we are willing to lose.
  5. Most importantly - build a portfolio of at least 2 strategies whose maximum DD dates are far from each other. In this way, we will reduce the likelihood of a significant drop in the trading account.
  6. It is highly desirable that one of the chosen strategies will be a day trading strategy so we will go to sleep peacefully…:sleeping_bed:

In the last 18 years I’ve been a trader and a developer. I advised to a large number of funds and institutional investors and found out that in the end, this fear of losses is a common fear and ONLY risk management can reduce the possibility of making wrong decisions. Everyone has to plan for himself self risk management that will eventually enable him to make a lot of money and really enjoy it.

Hence, the correct determination of the amount of money to invest and the choice of at least 2 good strategies that have no connection between their maximum DD dates is an excellent starting point for any investor who follows strategies here in C2 or in any other trading system.

It is always good to remember that the markets will continue to be open tomorrow and the day after tomorrow and will continue to generate opportunities for our profits, so it is better to pay in time (patience) and not to pay with money… Reducing risk in the market is no less important than choosing strategy and professionals will say that it is even more important…

Please do your homework before you invest your money here! :writing_hand:


Good article. Pretty simple and hard to do. I would like to add a little when the euphoria of successful deals comes to us. And then we double the capital in order to get more in less time. And then we get the result according to the law of averages. (
Risk management, discipline and plan - this is the truth that will give the preservation and increase of capital.