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
The Ultimate Guide to Risk Management 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. 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
How To Position Size Correctly Read More »
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 »