Risk & Position Management
Risk & Position Management is one of the fundamental concepts and building blocks in stock trading that allows you to protect your capital as well as to optimize your maximum gains. By establishing the level of risk you are going to take on each trade and what size your position should be, you can establish a more strategic, controlled way of dealing with the markets.
With effective position and risk management, you can make sure that no single trade can hurt your account significantly. It helps you not just react to when to trade, but also how much to trade, where to place stops, and how to manage trade exposure long-term. Instead of reacting emotionally to profit and loss, a sound risk structure brings reason, discipline, and consistency into your trading decisions.
Risk & position management strategies come in a few different types that include fixed-percentage risk models, volatility-based sizing, scaling in and out techniques, and portfolio-level allocation methods. Each of these types has its own individual strengths and weaknesses, and each is suited to different trading goals and market conditions.
In this course, you will learn all about risk and position management strategies and how to implement them when you are trading in the constantly changing environment of the stock market.
