What Does “Losers Average Losers” Mean?

Many years ago Paul Tudor Jones was photographed in front of a photo that read “Losers Average Losers”. What the heck does that mean and why is it so important? As traders our #1 job is managing risk. If you add to losing positions it may become extremely difficult to manage your risk. For example, If you put on a position with X dollars of risk and the position moves against you and you increase the position size very quickly a position with an initial risk of X can become 5X or more and jeopardize your monthly return or even your career (as happened to one of our traders last year who lost 20X his daily limit). In our training Read more […]
SMB Capital – Trading Education

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