What if you don't get 3R profits everyday?

Last week’s blog articles were about using the magic of compounding profits to turn a random 50% win-loss system into a huge winning system…all the while using very small risk. Profits were risked aggressively to achieve huge profits in that system, while starting capital was largely safeguarded from exposure to risk of loss.

This week, I’ll explore some of the shortcomings of the system as well as solutions to overcome them.

One shortcoming of the model described last week is that it system assumes that everyday you generate profits of 3 times risk. That in reality will not happen. Instead, what is likely is a random series of profits and losses. For example:
Day One: 3R profits.
Day Two: 1R profits.
Day Three: No profits/no losses.
Day Four: 1R loss.
Day Five: 3R loss.

...cont'd tomorrow...

Website Home has MOVED to:
http://LeisurelyCashFlow.Googlepages.com

Copyright 2008 Raymond T. Lee. All rights reserved.
LeisurelyCashFlow
eMail me Comments