Raymond Dalio is an American billionaire investor, hedge fund manager, and philanthropist. Dalio is the founder of investment firm Bridgewater Associates, one of the world’s largest hedge funds. Bloomberg ranked him as the world’s 79th wealthiest person in January 2019. Here is a video posted by Investopedia on Youtube where Ray Dalio explains how to diversify assets and trading systems to maximize […]
Ray Dalio Explains His Holy Grail Read More »
This is a Guest Post By Brian Hunt CEO of InvestorPlace. Of all the things that separate a great investor from the average losing investor, few can match the power of The 5 Magic Words A Great Investor Says Over and Over. A great investor says The 5 Magic Words – or something like them
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This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. In this video we learn a very important less from OddStats about the risks of trading in the
How Easy Is It To Blow Up A Trading Account? Read More »
This is a Video Guest Post by AK of Fallible In this video, Victor Sperandeo “Trader Vic” explains some of the best ways to to trade a 2019 bear market crash. What type of investments would be “defensive”? Which we should define as outperforming the market in times of economic slowdown? One favorite type of
How To Trade A Bear Market Read More »
In trading there are two sides of the game, how much you can make when a trade is a winner and also how much you can lose when a trade does not work out. It is like in sports where you have to play both offense and defense, there are two sides of a game,
The Top Ten Metrics of Risk Management Read More »
Here are ten ways to limit your risk exposure and minimize the size of your trading losses. 1. Never lose more than 1% of your total trading capital on a single trade. ‘The very first rule we live by is: Never risk more than 1% of total equity on any trade.” -Larry Hite “I try
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This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. Jack Schwager reveals how Paul Tudor Jones (PTJ) learned risk management. As you’ll see, it was a tough process!
How Paul Tudor Jones Learned Risk Management Read More »
This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here on ColibriTrader.com. Over eighty percent of today’s trading is automated. Before arguing this number, don’t think of only the HFT (High-Frequency Trading) industry. While responsible for a big chunk of it, retail automated trading contributes
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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 defensive aspect of trading. A lack of respect of risk is what removes many traders from the markets permanently at all levels. Here
10 Reasons Risk Management is so Damn Important Read More »
In the below video I explain how to position size properly to manage your risk by keeping your losses to a small percent of your total trading capital. A 20% position of your total trading capital gives you a potential 5% stop loss on your position to equal 1% of total trading capital. A 10% position
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One sign of a new trader of an inexperienced investor is emotionally reacting too much to a single trade or a single days price movement. Success happens on a longer timeframe, one day or one trade can be random in nature on the short timeframe. Market edges play out over time with a larger sample
Why Every Trade is Just One Trade Read More »
“Speculate with less than 10% of your liquid net worth. Risk less than 1% of your speculative account on a trade. This tends to keep the fluctuations in the trading account small, relative to net worth. This is essential as large fluctuations can engage {emotions} and lead to feeling-justifying drama.” – Ed Seykota This was
Ed Seykota on Position Sizing Read More »
This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. In this video Jack Schwager schools us on the importance of focusing on the RIGHT thing in markets — risk management. Too
Why Your Exit Strategy is so Damn Important Read More »
There are times in the markets where risk management is far more important than profits, keeping the capital you have safe is more important than growing it. I believe this is one of those times with volatility growing, uncertainty increasing, and many types of traders seeing profits evaporate and losses mount quickly. This is a
Top 10 Trading Risks Read More »
“Whenever I enter a position I have a predetermined stop. That’s the only way I can sleep at night. I know where I’m getting out before I get in.”- Bruce Kovner The biggest reasons traders end up unprofitable is simply because their big losses knock out all their previous gains. If you went back and
A Guide To Stop Losses Read More »
Here are five hidden dangers that new traders need to be aware of before they begin trading live with real money. Market liquidity: The spread between the bid and the ask prices can result in losses of capital when both entering and exiting a trade. The biggest dangers for large bid/ask spreads are with thinly
The 5 Dangers for New Traders Read More »
There are two kinds of traders: 1. Those who are humble. 2. Those who are going to be humbled. In the markets competence must come before confidence or the market will give you an expensive education. No one can predict the future prices of markets the stronger the belief that you can then the harder
Why Arrogance is Expensive in the Markets Read More »
All your trades should end in one of four ways: A small win. A big win. A small loss. Break even. Never a big loss. A small win puts money in your trading account, a small win is a success as long as your did not forfeit a big win by exiting too quickly during
The Way Your Trades Should End Read More »
Here are ten ways to keep your account safe during a market correction, when support levels break, up trends reverse, and oversold indicators just get more oversold. Your long positions should be stopped out quickly as the first short term moving averages are broken early on. You should already be out before the pullback turns
10 Ways To Limit Losses in Market Corrections Read More »
The top 10 causes of big losses in trading: Too stubborn to exit when proven wrong: You just refuse to take a loss, you think a loss is not real as long as you do not exit a trade. Too much ego to take a loss: You are on the wrong side of the market
Top 10 Causes of Big Trading Losses Read More »