DonateIf the information I provide on the blog is useful to you and has been helpful, feel free to tip the beer fund!! I love me some fine craft beer...
Subscribe to Blog via Email
Follow me on TwitterMy Tweets
- Full Disclaimer - Nothing on this site should ever be considered advice, research or the invitation to buy or sell securities. These are my personal opinions only.
Tag Archives: losses
A quick follow up to my last post on risk management. In the approach I outlined in that post the first component of the strategy was to limit losses. I gave the example of limiting losses per trade to 1% of equity capital and my more conservative approach of 0.3% of equity capital per trade. Today I just want to highlight why this is so important. The table and chart below show the % loss versus the return required to get back to breakeven. This is simple math. If you have $1K and lose 50%, it takes a return of … Continue reading