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
Here are ten reasons a stop loss is so important in trading: A stop loss defines your price risk by quantifying what price level you will exit a trade at. A stop loss helps define your trad... Read more
“Successful trading depends on the 3M`s – Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading p... Read more
In trading as in life there are both risks and rewards to consider before you start any journey. You have to ask yourself are the risks of loss worth the possibility of the gains from the re... Read more
On trade entry the risk/reward ratio measures a trades potential for loss versus the magnitude of possible profits. In backtesting the average of all the losses in a system compared to all t... Read more
In trading defense is under rated and offense is over rated.Too many new traders want to make money so bad they don’t even consider the risk of loss when the market becomes very volati... Read more
This is a Guest Post by Niclas Hummel, creator of the Risk Simulator and a trader living in Bangkok. “Trading is managing risk and being a trader is being a risk manager.” This simple statem... Read more
