TheRiskBlog

Is it, that sometimes you find yourself making a statement like this: “That’s the last trade for today!”?
If Yes, then you also know that often this won’t be the last trade.
We close our “last trade” for the day and after that it doesn’t last long until we see another big chance in the market. And without hesitation we jump into the next trade. But, WHY?

Sometimes you get carried away by a moving stock and since you want to participate you add it to your portfolio. Most of the times you have watched the stock for a long time but didn´t have the guts to invest in it. Or you did invest in it only to find out that it turned south the very next moment. The market had just waited for you to jump in. Once in a time though you find that magic stock, you invest in it and to your surprise it goes on and makes money, lots of it. Shouldn´t you be a bit suspicious? Here is such a stock

For most investors and traders risk is something they need to accept in order to come up with decent returns. Most of the times risk is measured in your account by how much you are losing when trading different positions. But sometimes risk shifts and it is not measured in the account any longer. When this occurs some positions can be made bigger without risking more but you need to know how to find out when this happens.

There are millions of News sites on the web but a lot of them just repeat content from other sites, so which one is original and comes up with ideas that can really be traded? Here are a few we like a lot since these websites all have something we need for our trading style.

Days like these are most interesting as far as risk management goes. Most of the times stock prices follow a chaotic pattern. Forecasting them is not easy if at all impossible but sometimes subtil changes in the surroundings make things forcastable. This happens when

Bruce Watson of the Daily Finance Blog posted the article: Food Shortages Coming? Famed Investor Jim Rogers Thinks So

The Article deals mostly with Jim Rogers opinion about the rise of commodity Futures because of an upcoming shortage in Food. But that´s not the point that caught my eye.

What can I say about the book?
Jack Schwagers “Market Wizards” is without a doubt one of the most important books about markets, trading, traders and risk management and therefore   you should read it.

The reason is very simple.

When people start out as traders they always have one goal. And that is to make money - preferably lots of it. People have different ideas but most often we hear something along the line: “..i want to be able to make a living trading…”, and “…i have this amount x right now but at the end of the year i would like to have doubled it…”.

Now this is all fine but how do you reach such a lofty goal? Let´s have a look at a few ways:

Today I want to show you how I create overnight positions in trending stocks. Like in every investment you first have to choose an initial risk stop that doesn’t threaten your account, but unlike intraday trades it is important for overnight positions to stretch the trading range.

Phil Town reminded us in his last post about an important market fact:

“The price of a business is all about the buyer and seller’s joint agreement on the near term future. If it looks rosy to both, the price will be high. If not, not so much.”