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.
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.
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.
How many stocks to hold in your portfolio? Below 200k you want to hold 3 to 6 stocks. Increase this up to 8-10 for larger accounts.
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Risk disclaimer
The content provided by Thweis does not constitute financial advice, guidance or recommendation to make or not to make any transaction, investment or decision in the context of financial markets. The content provided is impersonal, non-binding and not tailored to any particular individual user, trader or business. For this reason, we encourage you to seek professional financial advice before making any investment decision. Results are not guaranteed and may vary from person to person. Trading involves inherent risks, including the loss of your Investment capital or even beyond that. Past market performance is not indicative of future results. Any investment is solely at your own risk, you assume full responsibility. Read more in our full risk disclaimer.