If you trade stocks or any other financial market, you will often be confronted with that temptation: to buy more when the price goes lower. On the one part, you may have a cheaper entry price, but on the other hand, you may actually be doubling down on a losing trade. How do you approach…
With so many factors affecting the profitability of a trading strategy, using the right stop or exit method is necessary if you want to stand a chance of making money in the market. But must it be a stop-loss order? Are there other options for risk management, and what is the best exit strategy for…
For every trade you take, you have to exit at some point. The difficult part of trading is deciding when and how to exit or sell a position; it is easier to know when to enter a trade than when to exit it. This is why your trading plan must specify your profit taking strategy….
Ever so often I read how important risk management is. Yes, it might be important but my experience has told me it’s of no use to predefine risk and AFTER make strategies based on your risk tolerance. In my opinion that is doing it backward. I have tested thousands of trading strategies (I test around…
Risk is a very negative word for many, but as a trader, you have to face financial risk (even ruin for some kamikaze traders) every day. But to make a living trading stocks you have to face risk in a bold way. IMO, the greatest opportunity for success goes to those who are not afraid…
