Category Archives: Risk Management

How to Draw Trendlines & Avoid Severe Losses

Posted on June 1, 2012 by

From the high in 2000 to the low in 2002, the NASDAQ 100 index lost 83% of its value.  It has never recovered its losses.   From 2008 to 2009, the S&P 500 index lost 57% of its value (peak … Continue reading →

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Posted in Futures, In-Depth Article, Market Commentary, Market Timing, Risk Management, Stocks & ETFs, Technical Analysis | Tagged , , , , , , , | 5 Comments

Stop Loss Orders are Not Enough

Posted on April 6, 2012 by

Using stop loss orders on every trade is a critical component of risk management, but stops are only part of the solution. Even when using stops, most traders still take far too much risk.  In many cases, they completely overlook … Continue reading →

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Posted in Futures, In-Depth Article, Risk Management, Stocks & ETFs | Tagged , , , , , , , , , | 6 Comments

The Key to Trading Success

Posted on March 31, 2012 by

We all have losing trades. The key to trading success is limiting the magnitude of those losses, allowing us to return to profitability quickly.  Unfortunately, our very nature makes it extremely difficult for us to control our losses. Numerous studies … Continue reading →

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Posted in Risk Management | Tagged , , , , , , , , | 3 Comments

The Secret Weapon of Technical Analysis

Posted on March 28, 2012 by

The vast majority of technical indicators perform a computation on the price or volume of an individual security.  While these indicators can provide valuable insights, most traders ignore the most effective type of technical indicators. 

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Posted in Economic Indicators, In-Depth Article, Market Timing, Risk Management, Strategy Development, Technical Analysis | Tagged , , , , , , , , , | 24 Comments