Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By Stock Bee (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

A key component to successful trading is proper money and risk management

Tuesday, January 1, 2019 10:48

% of readers think this story is Fact. Add your two cents.

A key component to successful trading is proper money and risk management

Traders, in general, spend far too much time and effort trying to find magical systems or methodologies that produce high returns, rather than increasing their understanding of the markets and using astute money management to apply what they learn.

A key decision a trader need to make is frequency of trades and size o trade and stops on those trades.

One way to make money is by using larger stops , smaller position size and longer hold periods (trend following , buy and hold)

Another way is larger stops , larger position size and longer hold period ( shoot for the moon strategy advocated by some traders)

Third way is tight stop , medium to large position size and short holding periods. The momentum burst and anticipation strategy falls in that category. For that you have to be willing to do lot more trades.

I use fixed size of 1000 to 5000 shares based on price of stock. And stops around 400 dollars irrespective of price of stock. I move my stops to breakeven once in profit . And after that trail largely less aggressively in the beginning but very aggressively once I have over 1000 to 4000 dollars profit based on stock price. I do hundreds of trades in a year.

The number one priority for my approach is to find a setup where stop can be very tight and that works instantly after entries. Magnitude moves is what I am interested in not in duration moves.

Source: http://stockbee.blogspot.com/2019/01/a-key-component-to-successful-trading.html

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,599,358,538
Stories:	8,138,835