You might remember Ugly, the trader I interviewed a couple weeks ago. With June having come to a close, Ugly’s posted his returns for the month in the form of an R graph.

In a month that saw many traders suffer, Ugly turned in some nice results. He even points out that he digressed from his system on a couple days.

The great thing about limiting your risk is that you can afford to fall off the wagon a little bit without financial ruin. This is a point I discussed with TraderMike the other day – when you limit your risk you don’t have to stay up at night worrying about ruining your account; just follow your system and properly size your positions.

Idempotent wrote an excellent post about risk as it relates to account size. He points out some interesting facts for those of us not lucky enough to have huge accounts to trade. He goes into detail about different approaches to risk per trade and how many consecutive losing trades it would take to deplete an account using each approach.

It definitely put things in perspective. What dawned on me was the sheer recklessness it would take to ruin an account. For example, at 2% risk per trade, Idempotent tells us that it would take 26 consecutive losing trades to lose $50K account. 26?!?!? Wouldn’t you realize you didn’t have an edge after the first dozen or so?

It’s well worth a read as well as anything TraderMike writes about position sizing.

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

This is a list of new highs and lows on huge volume. It is automatically posted on this blog by StockTickr. To post this list on your blog, create a free account and go to StockTickr Blog Posting. Read the rest of this entry »

For the next interview in the StockTickr Interview Series (RSS feed), I spoke with Bruce Brotnov. If you’ve ever spent anytime on the Investor’s Business Daily online forums, you’ve probably run across Bruce. His thread called the Poorman’s Corner has over 500,000 posts and is by far the most popular thread on the site. In that thread you’ll notice Bruce’s forthright style and eagerness to lend a hand to beginning investors.

I asked Bruce why he named his investment service “Poormans” (a contrarian name if I’ve ever heard one ), how he picks stocks, and what indicators he can’t live without. Read on for the entire interview.

(By the way, Bruce recommends my favorite trading book of all time: Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets. I’m pretty sure Stan is still around, although I’m having trouble tracking him down for an interview. If you can help me get in touch with him, please let me know.

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