A stop loss is a risk management tool that keeps your losing trades small. The point of a stop loss is defensive and to eliminate stop losses from your trading. Here are ten tips for thinki... Read more
There are two different types of stop orders you can place with your broker to exit a trade when a specific price level is reached that triggers your stop loss on a position. Both of these t... Read more
A margin call is when a broker requires that an account holder deposit more capital into their account or sell an open position to maintain it at the required minimum security value for marg... Read more
The definition of financial hedging is to buy insurance to limit the risk of the downside if an asset falls in value. Hedging is a multi-position strategy that purchases insurance for an in... Read more
The Calmar Ratio was created by Terry W. Young in 1991, it is short for California Managed Account Reports. The Calmar ratio is usually based on recent and short term data. The Calmar ratio... Read more
CAGR stands for ‘compound annual growth rate’ and is used in business, investing, and trading as a term for the measurement as a geometric progression ratio providing a constant... Read more
The term Antifragile was coined by author Nassim Nicholas Taleb who was also a professional option trader and former hedge fund manager. Taleb created the word ‘anti-fragility’ b... Read more
The Sharpe Ratio was developed it in 1966 by William F. Sharpe as a way to quantify potential risk in an individual investment or an investing method or trading strategy. The Sharpe Ratio i... Read more
Margin trading is when your broker adds buying power to your account to increase the size you can trade and the quantity of trades you can make. Margin can be used to add leverage to your tr... Read more
When you enter a trade a stop loss is the exit tool you use to know when it is time to get out of the trade because you are losing money. A stop loss is the tool you use to prevent a small... Read more
