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 ...

In trading, discussions often center on strategies, indicators, or market predictions. Yet behind the numbers lies a quieter factor that often determines whether a system can endure: position sizing.

Trading in financial markets offers both possibilities and drawbacks. Hence, good long-term performance depends on good risk management. While optimizing possible profits, knowledge of and application ...

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 ...

They decide to risk a certain amount of money on each trade, but when they open MetaTrader or another platform they are not ...

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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.