How to Set a Daily Loss Limit: Formula and Examples
A daily loss limit is usually 2–3× your per-trade risk, about 2–3% of equity. See the step-by-step formula, examples, and weekly and monthly limits.
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Category: Trading & Risk Management
Support and Resistance: How to Find Key Levels and Trade Them
Support and resistance are price zones where buying or selling has repeatedly turned the market. Learn how to find strong levels, role reversal and where to place stops.
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Trend Following: Core Principles, Rules and Examples
Trend following buys new highs, cuts losses fast and lets winners run. Learn the core rules, a channel-breakout example, ATR sizing and why win rates are low.
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Bonds and Interest Rates: How the Bond Market Moves Markets
Why bond prices fall when rates rise, how yields and the yield curve work, and how bond markets move stocks, mortgages and currencies, with worked examples.
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Mean Reversion Trading: Z-Score, Bollinger Bands and Examples
Mean reversion bets stretched prices return to the average. Learn the z-score formula, Bollinger Band signals, a worked trade, and when the strategy fails.
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Breakout Trading vs Range Trading: Which Fits the Market?
Breakout traders bet price leaves a range; range traders bet it stays inside. Compare entries, stops, win rates and false breakouts, and learn to pick the right style.
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How to Trade Earnings and Macro Events: Gaps, IV Crush and Sizing
Earnings, CPI, jobs and FOMC releases can gap prices past your stop. Learn expected-move math, gap-aware position sizing, IV crush and a pre-event playbook.
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Swing Trading Momentum Stocks and ETFs: Setups and Rules
How to swing trade momentum stocks and ETFs: rank by relative strength, buy pullbacks in leaders, size from the stop and trail winners, with a worked example.
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Position Sizing Formula: How Much to Risk Per Trade
Position size = (equity × risk %) ÷ (entry − stop). See the formula, worked stock, futures, forex and options examples, and why 1–2% risk prevents ruin.
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Risk-to-Reward Ratio: Formula, Win Rate Table and Examples
Risk-to-reward = (entry − stop) ÷ (target − entry). Learn the formula, the breakeven win rate for 1:1 to 1:5, worked examples and why expectancy matters more.
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