The risk of ruin formula shows the probability a trader could lose enough of their trading capital that the return to even or being profitable is near zero for that account. The concept of t... Read more
Portfolio backtesting is the process of using historical price data to analyze and backtest the returns of a group of stocks, exchange traded funds, or mutual funds in the past. A complete... Read more
Here is a stock market game that Danny Merkel @ChartingTrends shared on Twitter this year. This is a card game that simulates the importance of position size and trading through sequences o... Read more
There are three sides of risk management that are crucial to understanding before you trade. The odds you will have a losing trade. The average size of the loss you will experience. The od... Read more
To manage the risk of ruin in trading position sizing should be managed to never lose more than 1% to 2% of total trading capital on any one trade. If a stock trader has a $100,000 account, ... Read more
This table shows the probability expressed as a percentage for the odds that you will have a certain number of consecutive losing trades in each 100 trade sample of your trading. For exampl... Read more
This is a Guest Post by AK of Fallible. Get rid of your trading FOMO with our free guide: https://macro-ops.com/fomo/ Learn more about the All Stars System here: https://youtu.be/-_xLL1b3r... Read more
This is a Guest Post by Alex @MacroOps which was posted originally here: is reposted here Play To Win Or Go Out Like Broomcorn’s Uncle by request. There is a passage from a classical Chinese... Read more
Risk management is one of the most overlooked aspects of investing and trading. Too much energy effort and focus is placed on entries and picking the right stocks. Risk management is the def... Read more
This is an example of one of the bonus videos from my technical trading video newsletter. In it I explain how to position size properly to manage your risk by keeping your losses to a small... Read more
