Thanks brian_z, Thanks for your deep and details answers!
As you said, with AB we can only use stop loss feature. However, Can we trade -off between loss and profit??? ex: if we invest into A (it's price may go up 80% and may go down 20%, otherwise, if we invest into B (it's price may go up 30% and may go down 70%) Should we should choose A, ect (Can AB helps us to follow this kind of matters???) I'am newbie so my thinking may be silly :D but it may help others. (I'm not nature English speaker also :D So my writing maybe difficult to understand) Thanks again --- In [email protected], "brian_z111" <brian_z...@...> wrote: > > Hello lyhung, > > Well that is a very deep philosophical question ... are you a > philosopher by nature ... if not a complete answer would be wasted? > > In trading, everything that can cause financial loss is a risk to be > considered: > > - data delay or errors > - broker slippage > - insider manipulation > - events (earnings change, company news etc) > - computer/internet 'error' > - incorrect strategy > - anlytical error > - correlation > - psychological error > - portfolio diversification > - and many more > > All need to be considered and emlinated or contained. > > Your capacity to identify and control risk is a measure of your > trading stature. > > Much of that has to be done outside of AB. > > However you probably would like a simple definition. > > It is your ave loss per trade (based on your stop loss) * the > probability of losing per trade i.e. if you have a guaranteed stop > loss of 2% then that is your risk per trade AND the risk to your > portfolio is based on the probality that you will experience a run of > losses. > > brian_z > > > > > --- In [email protected], "lyhungvpsc" <lyhungvpsc@> wrote: > > > > How should we use AB to consider the risk??? (RISK and DECISION > > ANALYSIS @RISK) > > >
