Novice day traders have little idea how to manage their trading risk,
even as a concept. The typical pattern is that they put on a
trade based upon some fairly poorly defined criteria, and when
the market eventually moves against them, they are clueless as to
when to get out of the position. Instead, they will typically let
the trade worsen until it is eventually too painful to retain.

The experienced trader, however, places risk management at the
heart of the entire trading plan from the very beginning…

During my investment banking career, economists were for me public enemy number one! I never saw what the big deal was about. Most of what they say is completely unprovable. It is always after the fact, and their explanations of forex, stock market or commodity market moves are always retrospective.

The essential problem is that these economic pundits are providing reasons AFTER the fact for why the market has done what it has already done, and they always look good riding on a trend that they imagine is likely to carry into the future.