Learn how to properly manage your risk, using position sizing and stops to maximize your profits…

One of the biggest missing pieces of most traders’ trading plan is Risk Management. If you want to be a successful trader, if you want to stop losing and losing BIG, there’s one topic that you can never over study: Risk Management.

This course is called, The Twin Pillars of Risk Management. It’s designed as an in-depth study on how to leverage the two biggest tools in your risk management tool belt: Stops and Position Sizing.

The First Pillar: Position Sizing

Position Size is the amount of money that you’re willing to commit to a trade. It’s also one of the most important parts of a trade, and something that most traders lack a proper strategy for.

Making your position too small can make a successful trade virtually worthless, as the return is too small and won’t impact your account balance. A position that’s too large puts you at great risk and makes a losing trade hurt more than it has to.

When it comes to position sizing, we’re going for the Goldilocks zone. Splitting the difference gives you the best of both worlds: Great profit potential and only modest risk. This course will give you the tools and strategies you need to make the proper decisions on the size of your positions.

Having a properly sized position is like choosing the size and scope of the battlefield. But you would never walk onto the battlefield without proper protection. And your protection is stops.

The Second Pillar: Stops

When setting stops, there’s 3 potential pitfalls:

1. Not setting a stop. Without setting a stop, your risk is literally 100%. It is the equivalent of walking into battle with no armor, no weapons, no support. And we’re not superheroes out here.
2. Tight stops. If the stop is too tight, the likelihood of being stopped on a normal gyration in price is high. How frustrating is it to get stopped out on a normal pullback, only to then see the stock rocket higher without you?
3. Loose stops. If the stop is too loose, your risk is too high. Also, how many times have you sold a plunging stock in a panic, only to realize that you sold at the low after an extreme pullback?

Again, we’re seeking the a stop level that is protects you from losses, while being able to handle the normal changes in the stock market. The good news is: there’s a right way to determine the proper stop range and the proper position size, to help you maximize your profits, while reducing your risk.

We’re going to cover it all in The Twin Pillars of Risk Management.