Position size, entry, stop loss and amount risked per trade should be relative to each other. Understanding how these are connected and being disciplined enough to incorporate this into your trading system and actually follow it on every trade will be a turning point in your trading career.
In this formula there must be a fixed variable and for me it is amount risked. In 5 minutes once you’re done reading this you’ll know why.
There are 5 steps you need to take to measure your risk and determine position size.
The first decision to be made is how much capital you are going to dedicate towards trading. This is entirely up to you but there are 2 basic rules I urge you to…
March 13, 2019
This article will cover what, why and how to use a stop loss with the above 2 points in mind.
A stop loss is an order that closes your position. If you are long, the stop loss will trigger sell orders to close your position. If you are short, the stop loss will trigger buy orders to close your position.
Depending on the exchange you use, there are multiple types of stop losses. …
Whether you’re an investor in equities, FX, crypto or any other asset, it is important to have a macro perspective outside of the market you focus on. Keeping a pulse on different subjects and metrics will help you begin to see correlation, or lack thereof, across markets and identify signals that can help you anticipate shifts in trend or find a new edge.
While there is a low correlation between economic growth and market performance, the issues outlined below come at a time when the equities market is at a pivotal point. …