Lance here! I heard through the grapevine that a world-famous trader is going to be is spilling a secret.
I wasn't sure what to think... but the fact that I'm writing to you about it means it's a BIG DEAL!
You see, I just found out that this legend is going to be sharing the same strategy that Warren Buffett uses to generate regular income.
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Knowing the right risk management techniques is one of the easiest ways to ensure that a trader has a successful future in profitable trading.
Risk management is the process of identifying, analyzing and accepting (or then trying to reduce) the amount of risk a trade or investment will have.
This also ranks pretty low as a priority to most traders. But effective risk management is important if a trader wants to keep their gains over the long term. Keeping your losses to a minimum means losing less money in the end — and that’s good for your portfolio!
Typically, you’ll see day traders follow the 1% rule as a risk management technique. This rule means that the most amount of risk a trader is allowed to take for every trade is 1%.
Traders do this by choosing the size of their position so that their total amount of losses is only 1% by the time their stop-loss is triggered.
But let’s be real, some trades are going to require more risk than just 1%. This is the investment world — some risk is necessary for incredible gains. In order for everyday traders to get those desirable profits, they’ll need to know more than just one technique for managing risk.
I know everyone loves talking about how much money they’re making with all their massive gains in the stock market
But no one ever wants to talk about risk management — the key to successful trading and investing.
Having inadequate risk management techniques (or none at all any) has already proven disastrous for the economy: The 2007 mortgage meltdown that led into the Great Recession resulted from extremely poor decisions about risk.
Knowing the amount of risk you’re taking on in a trade is, without a doubt, the difference between winning and losing.
Now, I like to trade a lot. I actively trade every day and I love to hold a boatload of positions at once.
However I only have two eyes, so I need to have proper risk management if I want to be able to keep feeding my cats.
Check out the video below for the No. 1 thing I do when it comes to managing my risk. I also want to hear your thoughts on proper risk management. Let me know in the comment section below what you do to manage your risk on trades.
P.S. Historically October and November have brought a very lucrative window for biotech companies, shareholders and traders alike…
And thanks to my “Free Ride” system, I’m able to count down the days to my next trades… and possible next wins.
You see, by exploiting a relatively unknown public calendar, you could also start counting down to timed stock explosions from biotech and pharma companies from all over the world …
…allowing you to see potential gains like $11,012… $13,900… and even $24,520 without risking a single penny of your initial stake!