Quick Market Update Before A MASSIVE MONTH OF DECEMBER
Quick Market Update Before A MASSIVE MONTH OF DECEMBER
A Short But, Yet Productive Read
Hello Traders and Investors,
As participants of the market, we are all looking for an edge and usually, for many, the edge is going to have a big emphasis on “how much bang for my buck” meaning…RISK VS REWARD!
HOW MUCH AM I AM RISKING VS MY POTENTIAL REWARD?
When identifying risk, you want to ask yourself the following question:
Is the level I am risking give the trade room to actually work?
What I mean by this is, anyone can mark an area on a chart and say “there is my risk” but, you want to be REASONABLE and give yourself the highest chances of the trade working. You have to allow the trade to work! Having a tight stop in a volatile environment is a VERY HIGH PROBABILITY of you getting stopped out before the trade works!
So before entering a trade you must ask yourself the following:
Does the amount I am risking allow the trade have room to work?
Does the potential reward justify my risk I am taking?
These 2 questions are a very important step to putting on a successful trade!
Why Was This Segment On Risk Important?
This segment on risk is very important because of the current area we are at on the S&P 500.
Let me show you below⬇