With the stock market looking weaker by the day, and omens of recession coming from every corner of the media, its time to take a look at what to do if you get caught in a bad trade. No one wants to be stuck in…
Tag: Risk Management
Stock Trading Basics – The Mindset
Trading stocks is hard. You need to guess the right stock, the right price, and the right direction in order to make money. Options are even harder, because the contracts come with an expiration date before which your prediction must come true. That’s four obstacles…
Stock Trading Basics – Risk Management
As discussed previously, when it comes to trading stocks the second most important thing after having a basic framework for understanding value and trends in the market is practicing sound risk management. This is because trading, like all human endeavors, does not follow any sort…
Stock Trading Basics – The Framework
There are three things that are crucial to financial independence and early retirement: making money, saving money, and managing investments. Yet if there is one method of making money that is scorned and rarely talked about in the FIRE community it is stock trading. Many…