Most professional traders employ some form of downside protection. And it’s even more important for beginners to learn risk management techniques to hedge their positions against losses caused by their long positions turning against them, as I’m sure many traders saw happen in 2022! That’s why I want to discuss some of my favorite risk management techniques for beginner traders. Many investors are expecting the conditions we faced in 2022 to endure in the new year, and I want everyone to be as prepared as possible. We’ll also cover how to estimate how much downside protection should be in place given the risk-reward potential of the trade. I find that put options sometimes work best… But from a practical perspective, the options might not always make sense because they may have low liquidity, the spread may be too wide, or the option that fits my requirements doesn’t give me enough risk protection or time value. If that’s the case, what do you do?
I may have just “cracked the code” to a bear market with this one pattern! I’ve found that over the past five years, this single candlestick pattern has a historic win rate of 100% on some of the most explosive stocks in the market!* You’ve probably never heard of many of these names…. In fact, you won’t find a single one of them in the S&P 500! No, they’re not speculative biotechs with no earnings, shady crypto companies or risky penny stocks… But I’ll reveal how to trade them — and the three stocks I’m watching in the new year — during a special live presentation at 1 p.m. ET TODAY, Jan. 2. And it doesn’t cost a thing to attend!
Why I Don’t Trust This Price Action, Plus My Top Trading Tips for 2023
December 30, 2022
The major indexes are down on the last trading day of 2022, with all three set to lock in their worst year since 2008 and break a three-year win streak.
* Profit examples represent buy and sell signals generated by the Champion Indicator Strategy from 09/03/02 to 9/28/2022 and may not be typical. Profit results are based on simulated trading and not actual trades. No actual money is invested, nor are any trades executed. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. There are risks involved with trading including the risk of loss.
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