Risk vs. Reward Using the Insurance Model

The concept of risk vs. reward is one of, if not the most important aspects within the world of trading. With that being said, many newer traders fail to realize there are a different ways in which this concept can be implemented into a trading plan and strategy. One way is very well known, but the other one…. used by insurance companies is what I want to focus on.

An example of loses wiping away multiple days of gains, SEE HERE. https://claytrader.com/videos/mind-trick-worked-march-trading-results/
Another losing day that wiped away multiple green days, SEE HERE. https://claytrader.com/blog/february-trading-results-frustrating/
Another example of losing days wiping away multiple green days, SEE HERE. https://claytrader.com/blog/how-i-ruined-my-month/
Not a single losing day all month long, SEE HERE. https://claytrader.com/videos/november-trading-results-gambling/
Another month without a single losing day, SEE HERE. https://claytrader.com/videos/am-i-a-good-trader/