“2 & 20” – Your Best Friend in a Volatile Market
I cannot over-emphasize the importance of stringent (rules based) capital and risk management
As an aside, I remember reading when Paul Tudor-Jones started his day – he wasn’t focused on how much we could make – it was how much he could lose.
Now in today’s volatile market (e.g., where a stock price can fall “20%” from one week to the next) — you must be rigorous with how you apply capital. There are no excuses.
And this brings me to basic “2 & 20” Rule. And this rule will apply not matter where you are in your trading journey…
