Is your focus on making money or managing your risk? Risk management is one of the most important aspects of trading, but it is often neglected by active traders. Listen, if you manage your risk successfully you WILL be able to trade longer. Managing risk equals smaller losses equals more capital to trade with for longer.
So how do you get it done? We’ve got three shortcuts that are going to get your risk back in line and help you keep the winners and lose the losers.
1. Trade Longer With Risk Control
Like I mentioned before, if you can control your risk, you can extend your trade. This post by Real Life Trading expert, Jerremy Newsome, is all about how to mathematically calculate your risk, and includes suggestions for how much risk you should take on each trade.
2. 3 Simple Tools for Risk Management
This is an oldie, but just as relevant today as it was last year. Get on the right track to managing your risk with these three simple rules from Investing Shortcuts founder, Jeremy Blossom.
Remember to plan your trade and trade your plan. Read more here.
3. Trading Rule #1: Use the Risk-Reward Ratio
Did you know that only 1% of traders make money doing it in the long run, and the majority lose it all? Trading is a tough game, but you can up your chances of success by following the #1 rule of trading by Kyle Fisher of the Daily Profit Machine.