Trend Following Part 3: The Math That Keeps You in the Game

Big Wins Matter. But Surviving the Losses Matters More.

Most people think the secret to trading is knowing what to buy.

It’s not.

The real secret is knowing how much to buy — and how much to risk when you’re wrong.

Because being wrong is guaranteed. And if you size too big when that happens, it doesn’t matter how many times you’re right later.

Volatility is the market’s way of telling you how loud it's breathing…