| Risk management is one of the most important, but most often overlooked areas of trading. Effective traders that trade for a living frequently deploy very strict money management techniques to ensure their losses are controlled, but they can effectively participate in positive market moves. Our collection of articles will show you several money management techniques deployed, and the rationale behind them. They range from "conservative" to "aggressive", but they all help you answer the fundamental question of "how much do I buy"; something that is not addressed in mainstream investment literature. |  |
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Many people aspire to make a sustainable living from stock trading. However, the failure rate of these individuals is well over 90%. There are many reasons for these failures, but most have one common theme: the lack of objectivity in trading methods. Subjectivity in trading is one of the most dangerous mistakes than can jeopardize a trader's ability to succeed in the market, or to continue as a trader. |
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Money management is perhaps the most important aspect of successful trading. Whether you are a long-term trader, or a short-term day trader, money management is the difference between success and failure for most traders. This topic, however, is one of the most neglected topics in trading and investing. |
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The Total Equity Method of money management is perhaps the most aggressive technique in that it allows for the largest loss percentage on a single trade. |
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Did you know it is possible to profit while losing a majority of your trades? Proper trade evaluation is a very important part of successful stock trading. Learning how to pick successful trades is key to maximizing your invesetment return while preserving your portfolio's value over time. |
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