The position size may grow over time by averaging down on a falling stock (not recommended) or by pyramiding up on a rising stock. In this article I’ll demonstrate my preferred pyramiding approach, and I’ll explain why it is the safer option.

Position sizing means deciding on the amount that you will ‘invest’ or ‘stake’ in a speculative position. Big position sizes produce greater gains, but at greater risk unless you also apply tight stop orders.

Stop orders are useful for stopping losses, no doubt, but that’s only half the story. As well as stopping losses, traders need to also run their profits, and stop orders can help you to lock in those profits

One of my seven pillars of position trading is diversification. Not only is this important for managing risk, so that a single bad apple won’t kill me, but also it is important for maximising profit

My implementation of the position trading approach is all about keeping it simple and (above all) applying good money management techniques, on the basis that if you look after the downside then the upside will take care of itself.

In the past few years I’ve written extensively about what I regard as ‘the most important weapon in the armoury of any trader’ – the stop order. I am sometimes asked about whether guaranteed stops are worth the cost of applying them, so I thought I’d take the time to outline what those costs are.

Naked Rambling

Hate to say this but I for one am completely bored with the phone hacking thing.

Honestly aren’t there more important things going on in the world? Yes I know it’s bad the hacking went on and it’s awful for those affected.

But for now I’ve switched the news off. I can’t take any more of it. Yes, okay, we have some corrupt journalists, politicians, and police.

But we really did know all this already didn’t we, sad though it might be.  [read more →]

Great to see the Government taking action regarding the sexualisation of children. About time.

Let’s let kids be kids for as long as we can. They should be playing innocently not dressing up in mini skirts and the like at 6.

I’ve also seen 9 and 10 year olds with Ipads with access to the internet with downloads of rap and videos which they really shouldn’t be seeing.

Girls especially get so much pressure so young to wear skimpy clothes etc.  [read more →]