There is a common saying on Wall Street “Let winners run and cut losers short.” This quote tries to express the principle of creating big wins or small losses. Creating a high ri... Read more
One of the biggest errors that new traders make is trading too big. If you trade too large of a position size you will inevitably give back any profits you earn with your first losing trade... Read more
Do you really understand what risk is? What is risk? Risk is a situation involving exposure to danger. Risk is to expose (someone or something valued) to danger, harm, or loss. – Oxfo... Read more
The art of selling a losing position is a key skill in the science of risk management. When you are in a trade that is losing money you have to know when it is time to exit and accept the lo... Read more
A risk management process for a trading system is not just math but also includes human psychology. The psychology of execution is just as important to profitability as the trading dynamics... 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
In trading and investing, risk management is defined as the process of understanding, identifying, adjusting and managing all of the potential risks that an account is exposed to so the size... Read more
Moving averages are primarily used as trend indicators and trend filters. They are quantified technical trading indicators that can be used for backtesting and signal creation. Using moving... 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
