TheRiskBlog

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

Today we start a series about risk management procedures for the active trader. We will work our way through a normal trading day and for the first step in our series we look at position size and how to come up with the correct one.

Very often traders look at a chart, find a pattern that they like and put in all they have. This is fine if the stock does what it is supposed to do but