One of the most important elements of profitable forex trading consists of prudent money management. While it may not sound glamorous, knowing about forex position sizing could save you considerable ...
Sizing is a key concept in portfolio management. Limiting a single position’s size can help prevent excessive losses. At the same time, distorting a position’s size can enhance performance, assuming ...
Trading without proper position sizing is essentially trading without a strategy. Mastering this critical skill—neither spending too much nor too little on a given position—helps protect you from ...
Position sizing is your primary tool to control risk. Research shows it drives over 90 percent of a strategy’s risk-adjusted return variance. Portfolio risk management doesn’t live in a vacuum. You ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...
Many traders in Kenya learn risk management only after a painful loss. They start with excitement about forex or indices, then discover that even a good strategy can fail if position sizes are random.