Imagine you are given 10 chips to play in a tournament.
Each bad trade is a chip that goes away. When they are all gone, you're out. It doesn't matter how good you are or how much theory you master: Without risk management, you're self-eliminating from the market. It's the only thing that guarantees your survival and allows your mathematical edge to have time to work in your favor.
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Imagine you are given 10 chips to play in a tournament.
Each bad trade is a chip that goes away.
When they are all gone, you're out.
It doesn't matter how good you are or how much theory you master:
Without risk management, you're self-eliminating from the market.
It's the only thing that guarantees your survival and allows your mathematical edge to have time to work in your favor.