Tag Archives: risk management

From the data: One reason traders struggle

Over the last couple of weeks I’ve been working with the forex trader data I’m going to …

Trader Psychology is NOT the most important thing

I came across a post on the FXStreet site with the following statement: “The majority of trading …

The Primary Trade Size Forumla

Position sizing is something that comes up ALL THE TIME in the discussions among new and developing …

A little quiz on trading returns

A book I’m currently reading (which will be reviewed later) presents a set of choices to the …

Maintaining a Position Mindset in a Portfolio

I met with the head of a PhD program yesterday. We had a good discussion of markets …

Rogue trading isn’t just an institutional issue

A recent discussion of rogue traders looks to address the reasons why they do what they do. …

Quick and Dirty Position Sizing Rule for Traders

There’s all kinds of discussion and advice about how much risk should be taken on a trade-by-trade …

Taxes and Cutting Your Losers

I’ve been doing quite a bit of reading on the subject of Behavioral Finance of late (and …

Some Trading Links and Observations

I’ve gone off on a rant about poor market analysis before (see this post, and this follow-up), …

Correlation analysis for trading position diversification

I got the following inquiry from the ever-curious Trader Rod. A few questions concerning correlation between two …

I don’t use stops. What do you think?

I got the question in the title of this post from a “fan” of The Essentials of …

Trading System Testing and Risk Management with Multiple Securities

A reader of my book sent me a question that combines system design and testing issues with …

Fighting the Ignorance of Traders Who Claim They Know

It’s ranting time! There’s a certain blogger out there who’s only purpose for posting (seemingly) is to …

Minimum Stop Loss

A question came up on Trade2Win that I thought probably was of interest to readers here as …

Adding to Your Winning Trades

At some point just about every trader starts pondering the question of if, when, and how to …

A Reader’s Story About a Stop Getting Hit

A reader named Susan left this comment recently on the Some Not-So-Great Tips for Using Stop Orders …

Big Trading Risk On Small Accounts – Bad Idea

If you’ve been reading my postings here for any length of time you’ll know that one of …

Stop Getting Hung Up On Stops, Targets, and Risk/Reward

“Is 30 pips a good stop?” “Should I use 50 pips as my target?” “Your risk/reward ratio should be …

Be careful with mean reversion trading

Mean reversion. That term comes up in trading and investing from time to time. It basically means …

Why are stocks and the dollar trading inversely?

One of the questions that’s come up a few times of late on the discussion boards is …

Different types of stops

Stops are always a favorite topic for discussion in trading circles. Here’s a recent question that came …

Volatility, Stops, and Other Topics

Here are a few interesting posts from my blogging peers that you may find interesting. Vix and …

Defending Options Trading Against Blogger Attack

A fellow trading blogger wrote some things which really irked me. I’m not going to say who …

Some Not-So-Great Tips for Using Stop Orders

Stock Trading to Go posted 10 Great Tips For Using Stop Loss Orders Successfully the other day. …

If it’s icy out there you have to take small steps

In case you haven’t heard, the Northeastern U.S. was hit by a bit of snow over the …

Very, very, very bad trading!

The following posting was pointed to me. I think it originally came from Craig’s List. The poster’s …

Lehman and company, like bad carry trades

In the forex market there are tons of strategies which basically boil down to being carry trades. …

Trader Wish List – Tenth Installment

Here is the 10th installment of my list of my trader’s gift recommendations. I want to feature …