Understanding Position Sizing Proper position sizing is crucial for managing risk and ensuring the longevity of your trading account. Position sizing involves determining how much capital to allocate to a particular trade. This process is essential to avoid substantial losses that could deplete your account. Being able to calibrate the size of your positions is […]

Understanding the Distinction Between Active Trading and Long-Term Investing Before diving into how to split capital between active trading and long-term investing, it’s essential to understand the fundamental differences between the two approaches. Active trading involves frequent buying and selling of financial instruments to capitalize on short-term market movements. Traders often use technical analysis, news, […]