Category: Trading Risk & Money Management

Precision Money Management
This article describes the model of a natural relationship between trading system performance, trade position size, stop loss settings and profit goals. The model consists of algebraic equations that specify the trade size and stop loss settings needed to meet profit goals over... [ read more ]

Taking Risks in Stock Market Trading
One general asserted truth is that profit is a goal for many of the men and women who populate this planet. Profit is the more desirable in the case of those who actually invest money because they want to extract even more financial benefits out of these particular... [ read more ]

Stock Market Money Management Skills
Let's start by saying: You can't be afraid to take a loss. The investors that are the most successful in the stock market are the people who are willing to lose money. Having a strategy and/or a specific philosophy is an excellent starting point to investing but it... [ read moer ]

What are Your Investment Risks?
You've heard there are risks in the stock market, but what are those risks exactly? One of the main reasons that people say they won't invest in the stock market is risk. But ask them to explain risk and they can't go any further than "I could lose all my money." Risk isn't that simple... [ read more ]