If you could redo your one worst trade, how much money would you have saved?
Tens of thousands of dollars?
By changing your mindset from being an "investor" to becoming a "Risk Manager", you will save yourself thousands of dollars.
And you will establish (and manage) trading positions more like the pros.
Sheldon Natenberg, famed author of the book "Option Volatility & Pricing", said:
"If you looked at a professional trading firm and analyzed what the traders are doing, you’d find they are spending a lot more time worrying about the risk of the position they have taken than trying to figure out exactly whether they got the right values in the marketplace. Perhaps the biggest mistake made by [non-professional] traders is the lack of risk management."
Okay. So you buy into this, and you want to know HOW do you stop losing money investing?
ANSWER: Buy insurance for your stocks. (This is also known as a "Married Put.")
In the SBI program, we give you the positions where the MAX RISK IS LESS THAN 5% (even if the stock drops to zero!).
It gives you a REAL risk management plan that the majority of investors do NOT use.
Use "stock insurance" to your advantage.
What does that mean?
It means to STOP trading based upon "gut feel" or other arbitrary decisions. (And STOP trading based upon the nightly news!)
Trading Deliberately means to make objective decisions based upon widely-used technical indicators.
We prefer the Bollinger Bands and RSI combination.
The BB's are a great TREND indicator.
And the RSI is a wonderful MOMENTUM indicator.
The BB's + RSI work as complementary and confirming indicators.
Paired together, they give clear ENTRY (or exit) signals.
And since we buy insurance when we establish a new position (see #1 above!) we are protected from downward moves that could hurt us.
Click here to read how BB's + RSI give great timing signals.