Position sizing: how to calculate trade sizeTwo traders take the same trade, at the same price, with the same stop. One loses 1% of their account and the other loses 10%. The only difference between them is a number they chose before entering.Investing strategies
Not signals, and not a system to buy. These are the structural decisions underneath whatever method you eventually settle on: how large a position should be, what relationship between risk and reward a strategy actually needs, and whether the positions you hold are as separate as they look.
Most retail accounts lose money. Nothing here changes that, and none of it is advice about what you personally should do.
Position sizing: how to calculate trade sizeTwo traders take the same trade, at the same price, with the same stop. One loses 1% of their account and the other loses 10%. The only difference between them is a number they chose before entering.
Risk-to-reward, win rate and expectancyA 1:3 ratio is not better than 1:1. It is a different bet, requiring a different hit rate, and the ratio on its own cannot tell you whether a strategy makes money.
Diversification, and why four trades can be one betSpreading money across more positions is not the same as spreading risk. A portfolio of six markets that all fall together is concentrated, whatever the account summary says.
Risk management: the whole accountSizing one trade correctly is arithmetic. Keeping an account alive across a hundred of them is a different job, and it is mostly about the losing streak you have not had yet.
Copy trading: what the track record does not tell youCopying somebody else does not remove risk, it transfers the decision. A 400% return and a 90% win rate can both be produced by a strategy that is one bad week from zero.
Algorithmic trading, and why backtests lieAutomating a strategy removes hesitation, fatigue and the temptation to move a stop. It does not make the strategy work, and the tool most people use to check that it does is the one most likely to mislead them.