That’s a quite popular question in the trading world. Together with its variants, ‘what’s your daily, weekly, yearly profit target ?’ it offers one way to gauge the trading experience of the person who asks. In most cases it will come from beginners and it’s the scope of this article to show why it is… Read More »
Let me state right off the bat that I’m not excluding myself when I say no one. Having clarified that, let’s delve into one of my pet trading related subjects. After I became interested in the markets, I used to look up to the nicely dressed, confidently sounding analysts who could explain every day’s price… Read More »
Determining the Size of a Position This is a continuation of my previous article here. I want to talk about the logical link between the risk we assume on an initial trade, the sizing of that trade and the expected reward. I already mentioned before that my preferred risk is no more than 0.5% of… Read More »
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! – Jesse Livermore Ask the average trader what it takes to have… Read More »
I consider risk control to be the most important aspect in trading. A lot of people might disagree with that, but I know that successful traders who’ve been at it for decades share my view. The most important rule of trading is to play great defense, not great offense. – Paul Tudor Jones The most… Read More »