Risk management

[keentrader]

Common trading advice:

• A stock is risky only if you did not place a stop loss to limit your risk.
• Take care of your risks and the market will naturally take care of your rewards.
  
• Set your stops, stick to it and get out when it’s hit. Don’t Question The Market or think that you know more than the market.
  
• Keep your bullets to fight another day

As a newbie, I want to keep this defence weapon with me whenever i go into the battlefield.

But, Is it really fool-proof to have these in every trade?
stop loss
stop limit
trailing stop loss

What else must I look out for?

 

[wahkao3]

lower your risks using FA and TA



[GPGT]My brilliant stock market selection method! Combine their power together surely will give me a lot of edge over Mr Market

Here is my brilliant stock market selection method.

My method is like this:

For me , i ish combine both TA+FA
both say buy, then i buy. Brilliant idea isnt it? Combine their power together surely will give me a lot of edge over Mr Market. How to lose money like that?
see I even made a cool banner for it

What u all think? Good method or not?

 

[keentrader]

Your method is good!

Is this method suitable for short term trading?
Applicable for shorting also?

I'm looking for breakout & breakdown.
Not keen on long term investment yet as my personal opinion is that market is peaking.

lower your risks using FA and TA



[GPGT]My brilliant stock market selection method! Combine their power together surely will give me a lot of edge over Mr Market

Here is my brilliant stock market selection method.

My method is like this:

For me , i ish combine both TA+FA
both say buy, then i buy. Brilliant idea isnt it? Combine their power together surely will give me a lot of edge over Mr Market. How to lose money like that?
see I even made a cool banner for it

What u all think? Good method or not?

 

[zawoo86]

lower your risks using FA and TA



[GPGT]My brilliant stock market selection method! Combine their power together surely will give me a lot of edge over Mr Market

Here is my brilliant stock market selection method.

My method is like this:

For me , i ish combine both TA+FA
both say buy, then i buy. Brilliant idea isnt it? Combine their power together surely will give me a lot of edge over Mr Market. How to lose money like that?
see I even made a cool banner for it

What u all think? Good method or not?

no one have an edge over Mr Market. Please give specific example of your FA + TA. I only see hindsight advices and general advices from you . I want charts, graphs, numbers, your profit/loss, evidence, anything concrete. Come on, throw me a bone.

 

[peterchan75]

Don't put everything in one basket. In the event that the market goes against you, it won't kill you.

 

[wahkao3]

Your method is good!

Is this method suitable for short term trading?
Applicable for shorting also?

I'm looking for breakout & breakdown.
Not keen on long term investment yet as my personal opinion is that market is peaking.

Sorry i ish not pro at short term trading, u must ask other shifu for short term trading

 

[wahkao3]

no one have an edge over Mr Market. Please give specific example of your FA + TA. I only see hindsight advices and general advices from you . I want charts, graphs, numbers, your profit/loss, evidence, anything concrete. Come on, throw me a bone.

this is not hindsight advice. FA+TA stacks odds in your favor so that you have a better edge.

Just like you go casino gamble, the house has an edge over you. With FA+TA, you have an edge over market
the more good you are at FA+TA, the more edge you have.

 

[kebinu]

Stop loss still can fail. Understand what is it first and what may happen.

 

[wahkao3]

Stop loss still can fail. Understand what is it first and what may happen.

then what method do you suggest to manage risk? Any anti-fail method available?

 

[zawoo86]

Stop loss limit is more of a band aid to stop your bleeding. The question is how do you not bleed in the first place?

Short term trading is an art. You can read up on all the technical indicators but how well can you put them to good use.

Not all counter are suitable for short term trading. How do you pick your counters? There are a few cylical counters that which I have traded very often. But I have spend a few months watching these counters before I jump onboard. Different counters behave differently. The same candlestick pattern may mean different things to different counters.

 

[areahealer]

Stop loss limit is more of a band aid to stop your bleeding. The question is how do you not bleed in the first place?

Short term trading is an art. You can read up on all the technical indicators but how well can you put them to good use.

Not all counter are suitable for short term trading. How do you pick your counters? There are a few cylical counters that which I have traded very often. But I have spend a few months watching these counters before I jump onboard. Different counters behave differently. The same candlestick pattern may mean different things to different counters.

Picking short term shares look out for charts and movements. Usually pick those rapid movement day-to-day for aggressive investors to maximize profit. Stop loss is important just remember don't bleed out.

 

[kebinu]

then what method do you suggest to manage risk? Any anti-fail method available?

Nothing is fool proof. I use stop but need to confirm at certain point that I can stop monitoring.

 

[Futureskid]

Common trading advice:

• A stock is risky only if you did not place a stop loss to limit your risk.
• Take care of your risks and the market will naturally take care of your rewards.
  
• Set your stops, stick to it and get out when it’s hit. Don’t Question The Market or think that you know more than the market.
  
• Keep your bullets to fight another day

As a newbie, I want to keep this defence weapon with me whenever i go into the battlefield.

But, Is it really fool-proof to have these in every trade?
stop loss
stop limit
trailing stop loss

What else must I look out for?

Risk management is a very broad topic, stop orders are only tools and just a subset of it, and these does not guarantee you to make returns. It can be used to enter positions as well.

Do you understand the meaning of the quotes that you quoted? Try to interpret the meaning in your own words if u can so that u can better understand the weapons u r carrying.

How well do u understand the importance of stops and why you must put stops? Do you know whether you would be rig off because you put stops? However, if u practise these in a disciplinary manner, maybe u would be better off than majority of the rest.