Avoid the psychological pitfalls in stock portfolio management by applying a capped portfolio approach. This money management technique allowed me to boost profits and added a ton of stability to my stock trading.
What I present here is a straight forward and sensible bottom-up position sizing approach. Improve your risk management by learning to calculate the position size based on your maximum risk allowance and a logical stop loss level of the chart at hand.
This article outlines a procedure to set up a base trading system with a positive expectancy based on your individual win rate. You also learn to calculate a suitable maximum risk per trade. Say goodbye to the useless generic 2% rule.
In this definite guide we will look beyond superficial money management and provide proven and in-depth techniques to lock-in profits, control risk, circumvent psychological pitfalls and hone your statistical edge.