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.
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Suppose you would know a stock price is heading up. In that case it would be easy to allocate the bigger portion of your portfolio to that stock alone and ride the wave. Unfortunately knowing where a stock is heading is everybody´s guess. Nobody really knows but there is They have been out there for a long time, but almost no one of our customers or any other investor we have asked ever attends a conference call. But if you call yourself a serious investor or trader you should attend one and see for yourself whether you gain valuable information about a company. Therefore today we have an interesting conference call for you Today we start our series on financial formulas. Throughout this series over time we will look at all sides of the financial business and try to clarify the mathematics behind the concepts. Our first entry deals with a simple one the Dividend Yield Investing in the markets is hard work, at least if you want to be profitable in the long run. It does not help to be lucky on your next trade, you need to be “lucky” on your next 100 trades. In order to achieve a goal that lofty you need to make sure that you keep your losses small. Idealy you always hit the exit button just below zero. In the real world this doesn´t happen to often, sometimes because the trader is emotional, hopes that the stock comes back or just wants to keep the stock for sentimental reasons. If you want to improve your trading substantially, then make sure that your losses are tamed. For that i have put together the 10 most important steps to do this: Especially in the beginning it is not always easy to deal with risk management. You have to find out the exposure to risk, your portfolio bears and for a beginner that is no easy task. If you don´t do it, you will most probably lose money in the longrun, so you have to find a way of doing it.
Up to now it was a tedious process that required skills and knowledge. Well, the bad news is, it still does, but the task got easier. Very simple idea but this is the heart of risk management. Every trade we make sets out to be a winner, but if we do not win for any reason, we need to make sure, that we don´t lose much. There are several ways to achieve this goal. 1. We can improve our hit rate and only trade stocks we know go up or down. The problem is, that in most cases we do not know exactly whether the stock will go up or down and it is a good amount of guess work. So improving our hit rate |
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