A calculated risk is taken when the probability and size of potential success is estimated along with the magnitude of…

There is a common saying on Wall Street “Let winners run and cut losers short.” This quote tries to express…

To manage the risk of ruin in trading position sizing should be managed to never lose more than 1% to…

After an entry the risk/reward ratio quantifies a trades potential for loss size versus the size of possible profits. When…

The Risk of Ruin (Also called the RoR) is a statistical model in trading which quantifies the probability a trader…

CAGR stands for ‘compound annual growth rate’ and is used in business, investing, and trading as a term for the…

Here are ten reasons a stop loss is so important in trading: A stop loss defines your price risk by…

In trading as in life there are both risks and rewards to consider before you start any journey. You have…

On trade entry the risk/reward ratio measures a trades potential for loss versus the magnitude of possible profits. In backtesting…

This is a Guest Post by Niclas Hummel, creator of the Risk Simulator and a trader living in Bangkok. A Monte…