Tag Archives: Risk Management

Get used to stops taking you out

Posted on June 4, 2011 by Stock Trade Journal

One of the few tools a trader has to control risk is the stop loss. Continue reading →

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March Performance Review

Posted on April 1, 2010 by Stock Trade Journal

In this month’s performance analysis I began to use the “Expectancy” measurement as a way to incorporate both “Batting Average” and good R/R. Continue reading →

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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 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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