Position sizing and risk management
Risk management and position sizing are two of the main concepts in trading. You need – I repeat it again – you NEED to understand them before even starting to trade.
Questions like: “how many shares to buy? When to sell? How to manage the risk to avoid large drawdowns?”. This is what you will be able to answer when you understand risk management and position sizing.
The video below explains these important concepts. If something is not clear, please ask. Again, it is crucial that you know these concepts to survive in trading.
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