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…
Knowledge Base · 25 articles
Trading & Risk Management
Learn trading fundamentals, risk management, position sizing, stops, expectancy and trade management, with worked examples and formulas.
Stock Breakout Trading: Entries, Volume and Stop Placement
How to trade stock breakouts: tight bases, pivot points, volume confirmation, three entry methods compared, stop placement and why breakouts fail.
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%…
Stock Volume Analysis: Relative Volume, OBV and Breakouts
Volume shows the conviction behind a move. Learn relative volume (RVOL), on-balance volume, volume divergences and a pre-trade volume checklist, with examples.
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…
Stock Risk Management: A 4-Layer Framework With Examples
A practical stock risk framework: 1% risk per trade, portfolio heat limits, sector caps and drawdown rules, with worked examples and a one-page risk…
Bid-Ask Spreads, Liquidity and Order Execution Explained
The bid-ask spread is a cost on every trade. Learn how spreads, liquidity and order types affect your fills, how slippage happens, and how…
What Is VWAP? Formula, How to Trade It and Common Mistakes
VWAP = Σ(typical price × volume) ÷ Σ volume, reset daily. Learn the formula with a worked example, how day traders use VWAP pullbacks…
EMA Clouds Explained: Settings, Formula and Trend Signals
An EMA cloud is the area between a fast and slow EMA, like 8/21. Learn the EMA formula, how to read cloud color and…
Average True Range (ATR): Formula, Stops and Position Sizing
ATR measures average price range including gaps. Learn the True Range formula, how to set ATR stops, size positions from ATR, and settings for…
Implied vs Historical Volatility: IV, HV, IV Rank and Expected Move
Implied volatility is the move options price in; historical volatility is the move that happened. Learn both formulas, IV rank, expected move math and…
Trading Psychology: How to Beat FOMO, Greed and Revenge Trading
Why traders chase, hold losers and revenge trade, what the research on loss aversion shows, and a rule-based system to stop emotional trading mistakes.