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Posts Tagged :

risk management

  • Risk Management

    The Risk Per Trade Method of Position Sizing

    By Jonathan Hobbs, CFA
    September 2020

    In these times of major market volatility it is more important than ever for traders to manage risk. In this article we will look at the ‘risk per trade’ method of trade position sizing.

    What is trade position sizing?

    Let’s say Bob wants to short Tesla but he doesn’t want to take too much risk. The first thing Bob needs to keep his risk management in check is a stop loss. This way if Tesla’s price keeps climbing, Bob would automatically close his short position to limit his loss.

    If Bob has a tight stop loss on his Tesla short position, his loss would be smaller than if he has a wide stop loss (assuming the price reached both stop losses). But the loss on Bob’s trading account would also depend on the dollar value of his Tesla trade—this would be his trade position size.

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  • Fibonacci Retracement

    Fibonacci Retracements Explained

    By Jonathan Hobbs, CFA
    January 2020

    Fibonacci Retracement levels are a useful tool for many technical analysts. In this post, we will find out why.

    The usual disclaimer: none of this is investment advice. Any examples or references used are just for information and illustration. 

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  • Rebalancing Investments

    3 Things About Portfolio Rebalancing

    By Jonathan Hobbs, CFA
    January 2020

    Portfolio Rebalancing can improve returns and lower the risks of investing over time. In this post, we will explore 3 things to keep in mind when rebalancing your portfolio.

    The usual disclaimer: none of this is investment advice. Any examples or references used are just for information and illustration. 

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  • Bitcoin diversification

    Bitcoin and Portfolio Diversification

    By Jonathan Hobbs, CFA
    September 2018

    Diversification between assets classes can improve the risk-adjusted returns of your investment portfolio. In this article, we’ll see how portfolio diversification applies to bitcoin.

    The usual disclaimer: none of this is investment advice. It’s just for information and illustration.

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  • relative strength index

    Technical Analysis 101: The Relative Strength Index (RSI)

    By Jonathan Hobbs, CFA
    September 2018

    In this series of Technical Analysis 101, we will explore one of the most commonly used technical trading indicators: the Relative Strength Index (RSI). 

    The RSI is a momentum indicator that traders use to show whether an investment is approaching overbought (sell signal) or oversold (buy signal) territory.

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