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
Risk management is used in all industries to mitigate the probabilities of the loss of assets. Risk management identifies, evaluatates, and prioritizes the frequency and magnitude of the pot... 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
After an entry the risk/reward ratio quantifies a trades potential for loss size versus the size of possible profits. When backtesting signals the average size of all the losing trades in a... Read more
The Risk of Ruin (Also called the RoR) is a statistical model in trading which quantifies the probability a trader will eventually blow up and lose all of the trading capital in their accoun... Read more
Leverage, when taken literally, means an advantage in an endeavor through assistance. When using leverage as a verb its meaning is to have an advantage through using a tool like a lever. A l... Read more
A trailing stop loss is a risk management tool for locking in profits on a winning trade. While a trade may start out with a stop loss after the initial entry to exit if the trade does not g... Read more
3 best trailing stop loss strategy to ride any trend This is a Guest Post by Abhi Raj of windows ground In the journey to being a successful trader, one of the most important pieces o... Read more
An ATR trailing stop is one way to manage a trade at both the time of entry as a stop loss setting and if it evolves into a winning trade by exiting when the price reverses far enough to tri... Read more
