Here are the five primary reasons the majority of traders lose money in the markets. Trading too Soon Trading real capital in the markets before you are ready can be…

Risk management is the specific parameters traders put in place when trading to limit the losses on positions that go against them. Stop losses, position sizing, and trailing stops are…

The Treynor ratio is a measurement of the returns earned in excess of what could’ve been earned on an investment that has no diversifiable risk per unit (like U.S. Bonds)…

What is a trailing stop loss? A trailing stop loss is a risk management tool for locking in profits on a winning trade. A trailing stop is a strategy that…

Here are my top picks for the best books on risk management for traders. These books cover the importance of position sizing, stop losses, trailing stops, total risk exposure, leverage,…

A calculated risk is taken when the probability and size of potential success is estimated along with the magnitude of a possible loss is considered before a decision is made…

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…

What does “Memento Mori” mean? It is Latin for ‘remember that you must die’ [one day]. The most successful generals in ancient Rome were awarded a “triumph” entry into the…

A stop loss is set after a trade entry at the price level on a chart where a trader will accept being wrong and exit for a small loss. A…

The idiosyncratic definition means to relate to idiosyncrasy; peculiar or individual. It is a distinctive or peculiar feature or characteristic of a place or thing. Idiosyncratic risk is one category…