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Les,

Isn't that a bit of a psychological construct?

What matters is the bottom line... The discussion on risk is great, but without context when potential reward is ignored. I think trend following systems such as t/t illustrate that perfectly.

Yes, you make assured losses, and most assuredly give back a piece of profit on exit, but in the context of profits generated by the system, these risks are accounted for and overwhelmed by the reward aspect of the equation.

Bull markets illustrate another point... targets can be exceeded by a long long way! The punters are pushing stocks WAY past fair valuation IMO.

Is it better to take a fair profit? Or better to give back a small piece of a ludicrous profit? The answer is probably what is most psychologically appealling....and the effectiveness of the individual within their chosen disipline.

Cheers

<blockquote data-quote="wayneL" data-source="post: 38306" data-attributes="member: 58">Les,Isn&#039;t that a bit of a psychological construct?What matters is the bottom line... The discussion on risk is great, but without context when potential reward is ignored. I think trend following systems such as t/t illustrate that perfectly.Yes, you make assured losses, and most assuredly give back a piece of profit on exit, but in the context of profits generated by the system, these risks are accounted for and overwhelmed by the reward aspect of the equation.Bull markets illustrate another point... targets can be exceeded by a long long way! The punters are pushing stocks WAY past fair valuation IMO. Is it better to take a fair profit? Or better to give back a small piece of a ludicrous profit? The answer is probably what is most psychologically appealling....and the effectiveness of the individual within their chosen disipline.&nbsp;<img src="https://www.aussiestockforums.com/styles/default/xenforo/smilies/twocents.gif"&nbsp; class="smilie" loading="lazy" alt=":2twocents" title="Two Cents&nbsp; &nbsp; :2twocents" data-shortname=":2twocents" /> Cheers</blockquote>

[QUOTE="wayneL, post: 38306, member: 58"] Les, Isn't that a bit of a psychological construct? What matters is the bottom line... The discussion on risk is great, but without context when potential reward is ignored. I think trend following systems such as t/t illustrate that perfectly. Yes, you make assured losses, and most assuredly give back a piece of profit on exit, but in the context of profits generated by the system, these risks are accounted for and overwhelmed by the reward aspect of the equation. Bull markets illustrate another point... targets can be exceeded by a long long way! The punters are pushing stocks WAY past fair valuation IMO. Is it better to take a fair profit? Or better to give back a small piece of a ludicrous profit? The answer is probably what is most psychologically appealling....and the effectiveness of the individual within their chosen disipline. :2twocents Cheers [/QUOTE]

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