Monthly Archives: March 2010

Risk Management Pt 5

Posted on March 4, 2010 by Stock Trade Journal

In previous posts I talked about position sizes and Reward / Risk ratios as important aspects of any Risk Management methodology for traders. Today I am going to share with you how I use these concepts in my trading with a specific example. Continue reading →

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Risk Management Pt 4

Posted on March 3, 2010 by Stock Trade Journal

Managing risk in trading is all about keeping losses small and your winners big. In the previous post I talked about how to calculate Reward : Risk in a trade and that the aim is to only enter trades that offer at least 3:1. In other words aiming for gains that are at least three times the losses. I (in the first post) also talked about parameters to choose your position sizes according to skill level (proven edge), trading capital and type of account. Next is to determine the number of shares for a new position. Continue reading →

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Risk Management Pt 3

Posted on March 2, 2010 by Stock Trade Journal

Last post explored how a trader can evaluate his edge by implementing an analysis methodology and routine. I talked about the importance of having a large winner vs loser ratio both in profits and frequency. In other words a good … Continue reading →

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Risk Management Pt 2

Posted on March 2, 2010 by Stock Trade Journal

In the previous post I talked about the different variables in play to determine a good risk management model and technique. One of the variables was the trader’s edge. Continue reading →

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Risk Management Pt1

Posted on March 2, 2010 by Stock Trade Journal

Risk management is probably the most important strategy traders need to implement. I have read many books and blogs on trading where a simple 2% risk rule is advocated, but I have found that it doesn’t work for me. First, … Continue reading →

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February's Performance Analysis

Posted on March 1, 2010 by Stock Trade Journal

This month I tried to tackle over trading. I decided to limit to 5 the number of trades I could enter in a week. Not necessarily one trade per day, but 5 trades per week. Check out the performance graph and stats below. Continue reading →

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