{"id":3364,"date":"2017-12-22T10:03:03","date_gmt":"2017-12-22T10:03:03","guid":{"rendered":"http:\/\/joapen.com\/blog\/?p=3364"},"modified":"2017-12-22T10:12:24","modified_gmt":"2017-12-22T10:12:24","slug":"trading-risk-management","status":"publish","type":"post","link":"http:\/\/joapen.com\/blog\/2017\/12\/22\/trading-risk-management\/","title":{"rendered":"Trading, risk management"},"content":{"rendered":"<h1>Risk management is one of the key points when you trade in any market<\/h1>\n<p>I have to mature the risk management mindset and measure how the actions I perform are working with respect a level of exposure that I want to take.<\/p>\n<h1>Definition of level of exposure<\/h1>\n<ul>\n<li>Perform operations between 0,5% and 2% of the value of your portfolio.<\/li>\n<li>Understand that for higher volability, the time-spam for trading has to be short, as the risk exposure is higher.<\/li>\n<li>When you define a move you have to define the amount or percentage that you expect to earn.\n<ul>\n<li>You will have to define a ratio of earnings\/loss.<\/li>\n<li>This ratio should be between 2 &#8211; 3. This means that if you expect to with 20 points, you should stop when you are losing 10 points; this corresponds to a &#8220;2&#8221; ratio.<\/li>\n<li>A ratio close to &#8220;2&#8221; is more conservative. A ratio close to 3 is more risk.<\/li>\n<\/ul>\n<\/li>\n<li>If you lose 20% of your portfolio, stop trading, think about what is happening with the right perspective. If you not do it, you have high percentage of losing all.<\/li>\n<li>A loss of 10% in a month is unacceptable, this is also an event that should trigger you to stop.<\/li>\n<li>Backtest, backtest and backtest is an exercise that really improve the results and reduce the risks.<\/li>\n<li>Review trading bias regulary.<\/li>\n<\/ul>\n<h1>Stop Loss<\/h1>\n<ul>\n<li>Define where to put the stop-loss.<\/li>\n<li>Do not touch the stop loss.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Risk management is one of the key points when you trade in any market I have to mature the risk management mindset and measure how the actions I perform are working with respect a level of exposure that I want to take. Definition of level of exposure Perform operations between 0,5% and 2% of the &#8230; <a title=\"Trading, risk management\" class=\"read-more\" href=\"http:\/\/joapen.com\/blog\/2017\/12\/22\/trading-risk-management\/\" aria-label=\"Read more about Trading, risk management\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,105],"tags":[],"class_list":["post-3364","post","type-post","status-publish","format-standard","hentry","category-risk-management","category-trading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trading, risk management -<\/title>\n<meta name=\"description\" content=\"Risk management is one of the key points when you trade in any market I have to mature the risk management mindset and measure how the actions I perform - 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