Be the Best!

Why not use this Sunday to educate yourself/brush up on various aspects on trading. All for free.

More on our unique risk and p/l management click here.

More education such as options trading, market psychology  and much more here

Below is an excerpt from what we see as the single most important aspect to trading:

 

Risk and p/l management!

Risk management is a vital part of successful trading! Most people realize this but very few understand what risk is, nor do they have the tools to properly manage the risk in their portfolio. You will read about stop losses and other risk management tools on sites written by so called traders that actually lack proper understanding of risk and p/l management.

There are many ways to calculate the risk in your portfolio, but most of those are formulas not easily understood, one example is VaR (value at risk).

Risk must be understood easily and the tool(s) must be easily managed!

A trader produces only one thing, p/l. Therefore it is vital to manage and optimize the p/l. While most risk management systems focus on the risk via various formulas, I believe, especially for relatively short term trading, one should manage risk in relation how the underlying p/l of the portfolio is developing.

The actual p/l produced should determine what risk you should be taking.

The more money you are generating the more risk you should take. Inversely, the more negative your p/l is developing the faster you need to reduce risk taken.

Over the years we have developed a risk and p/l methodology. It is a simple tool that objectively tells the trader when to decrease or increase the risk in your portfolio.

Full must read on the most objective risk and p/l method you will ever read about click here. Give yourself time to read the full article and you will transform your trading!

Wanna look like this?