Risk

One of the smartest things you can do in a down cycle is having the ability to switch to an alternative trading strategy. Or even an alternative asset class.

To reach the level of a profitable trader there are two opposing views: To specialize or to diversify. But each has strengths and weaknesses.

The average true range or ATR for short is a way of measuring volatility in price. One of the most useful aspects of it is that it captures both intraday volatility and between day volatility.

To reach the level of a profitable trader there are two opposing views: To specialize or to diversify. But each has strengths and weaknesses.

Does it feel like a white-knuckle ride whenever you put on a trade? If the answer is yes, something is going wrong. This kind of excitement may be great for the recreational trader. But for the day trader it can be devastating.

Anyone who does it for a living would tell you that day trading certainly isn’t a way to easy riches. With failure rates among...

In the early 1980’s an experiment took place to find out if it is possible or not to take a bunch of ordinary people off the street and turn them into trading moguls.

We all have to deal with losing trades at some point or other. But the question of what to do when this situation arises can pose several challenges. When confronting a losing trade we face three possible choices.

Trading without stop losses might sound like the riskiest thing there is. A bit like going mountaineering without safety gear. But what's the reality?

To manage this risk, what some do is make a simple guess to estimate the potential loss involved.The problem though is this doesn't take the full picture.