Proper risk management is still a bit of a mystery to me. I have come across bits and pieces of advice talking about stop losses, probabilities, position sizing etc. So far, I have only really practised honouring my stops instead of letting losers run away with my money.
When reading Reminiscences of a Stock Operator, I gained the impression that Livingstone didn’t use any technical indicators, just pure ticker action, experience and knowledge of the impact of certain events on the stock market. I might be wrong in this assumption. However, the idea strikes a chord with me.
Frequently, I see people post on social media something along the lines of, “What do you think of this or that indicator?” Some experienced traders seem to rely on their favourites.