Hi there, Trader,
I want to discuss a segment of money management with you that some traders call trade management.
Trade management deals with how you manage your capital that you have committed to an actual position and how you exit.
Some traders exit all of there position at a particular profit target which is a [...]

• 0 Comments

Hi Trader,
Today, I want to go over what profit factors are and how they apply to trading.
Profit factors are calculated by adding up the total profits from a given trading method and adding all the losses from the same trading method and then dividing them to come up with a profit factor.
For example, if you [...]

• 0 Comments

Hi Trader,
Lets talk about position sizing and how that relates to trading.
Position sizing ties in a lot with the last couple of lesson so be sure you have a good grasp of what the last few lessons before going any further.
Position sizing deals with how much of any one stock or option that you apply [...]

• 0 Comments

Hi Trader,
In this newsletter, I want to use the last example from the previous newsletter except instead of calculating risk with the stock price I want to use options instead.
I also want to add that if you do not have any knowledge of options not to worry. They sound harder than they are but [...]

• 0 Comments

Hello Trader,
Today, I want to share with you a rule that is widely known by the best traders in the world. It is called the 1-2% Rule.
It basically means that you would risk no more that 1-2% of you capital on any given trade. Any more than that and your risking too much. [...]

• 0 Comments