“Scaling in” means to increase the number of lots in a position as the price is going in the favorable direction and your confidence is rising that the trade will be profitable. “Scaling out” is to reduce the number of lots in a position as price momentum

Any stop-loss method, applied consistently, is better than not using any stop-loss at all, but once you acknowledge that you should use a stop, it is only sensible to use the best one you can devise. You can design your stop to be in sync with the market,

The importance of using a stop-loss order cannot be overstated. As W. D. Gann wrote in the 1930’s, if you do not use stops, it is not a question of whether you will go broke, but a question of when. This is because the market is hyper-sensitive to externa

The previous lesson asserts that if you follow one of the mathematician’s models, there is only one optimum way to set position sizes. But in practice, traders use many other methods to set sizes. The first one that gained wide attention is the 2% rule de

Many Forex traders, if not most, trade a fixed number of contracts every time, and trade the same number of contracts in each of the currency pairs they trade. It can be conclusively demonstrated statistically that trading the same fixed number of contrac