Set Stop Loss

As we already know, stop losses are part of risk management and money management, aspects that we must understand very well in order to be profitable in the long term. How to Set Stop Loss? It should be placed where we think the price will never arrive. That is why if it arrives, it takes … Read more

Number of operations

Money Management techniques in trading In addition to the risk per trade, it is necessary to have a maximum risk for the total account. This maximum risk would be the percentage you would be willing to lose in total, assuming that all your open trades end up losing. If you are a swing trader you … Read more

Risk management

Risk management is about measuring and quantifying the likelihood of adverse market effects that may affect our investments. In other words, it is about keeping risk under control. No matter how good a trading strategy you have, you can end up losing all your money if you do not use proper risk management. Financial risk … Read more

The Gambler’s Fallacy

What is the Gambler’s Fallacy? A common false belief among novice traders is that after a series of losing trades in the market, the probability that the next trade will be a winning one increases. Therefore, they believe that the best way to recoup losses and make a profit is to increase the size of … Read more

Position size

One of the keys to money management in trading is knowing how to size the position correctly. For this, there are a few techniques: Martingale Antimartingale F for Kelly Hedging technique Drawdown Portfolio diversification Martingale This method consists of adding money to a losing position, usually by “doubling the bet”, so that if the market … Read more

Types of orders

Before talking about money management and risk management, we should mention the types of orders that exist and their uses in order to understand some concepts that we will see later. Brokers have several types of orders to enter and exit a trade, some have their own, so we will only mention the most used … Read more