IncomeSharks

RISK MANAGEMENT

It's probably the most important thing about trading that usually gets taught last or discovered after blowing an account or losing big on a trade. In order of important you have risk management, exits, and then entries. Most think they are getting bad entries and that's why they are bad at trading, that's not actually the case because a bad entry with a good exit and proper risk management can still be a good trade. The opposite applies for a great entry but bad risk management and a bad entry, you can end up losing, round tripping, or over managing a trade and making less than you would had you gone smaller and forgot about it.

1% RISK PER TRADE - THE SWEET SPOT

Everyone is in a different financial position but there's something about 1% risk per trade that seems to work at all different tax brackets. 1% doesn't mean 1% growth, it means you are risking 1% of your entire 100% account size. That means if a trade goes wrong, and idea doesn't work, or a big gamble doesn't p