Today’s topic is easily one of the biggest trading mistakes holding you back from seeing your trading account move higher month after month.
Once you understand this aspect of trading everything changes.
It’s about risk.
Inexperienced traders mistakenly believe that risk is about volatility. It’s not.
Risk is not simply about how fast or how much a stock moves.
Risk is a measure of the probability of profit. Volatility is simply the speed of that probability.
And the mistake traders make is believing that risk and volatility are the same thing. The critical error this leads to is incorrect position sizing.
This topic has multiple implications but today we’re going to tackle the most actionable.
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Sectors Reviewed: Technology, healthcare, financials and basic materials.
All ideas are for educational purposes. It's up to each individual to make their own decisions.
Pete Renzulli | Stock Trading Pro
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