Stock Traders System

I trust you’re enjoying this series on Lessons from the Casino.  Although many investors would not consider themselves “gamblers,” their investment decisions call their self-judgement into question.  That’s why I wanted to take a few moments to compare approaches within the two arenas. So far, here’s the lessons we’ve considered from the Casino: Avoid Debt to Create Investment EquityWalk Away a Winner by Putting Cash in your PocketKnow the Rules of the Game before PlayingDon’t get Raked over the Coals……

In whatever trade market you are on, your trading system should always contain rules or initiatives that would prevent you from further losing money, should the market is not working in your favor. One of these is a proper trade exit. This is part of risk management that you should take seriously or else you will continue to lose within your market. Probably you have already set your system on how to spot a good trading opportunity and you have…

When it comes to investments, risk tolerance is an issue often discussed but rarely defined with precision. And maybe, because it is a complex issue that has to do with the psychology of each investor, is a difficult topic to address, because there are no fixed rules can be applied equally to everyone. As a first tool to approach this issue, there are tests that candidates can apply to measure. Surely, as a result investors may be described as: conservative,…