Position sizing, risk-reward ratios, drawdown management and long-term capital preservation.
Legendary Traders · Market Wizards Monroe Trout The Quant Who Made 67% a Year With an 8% Drawdown Founder of Trout Trading · Featured in The New Market Wizards · “The Best Return That Low Risk Can Buy” Last reviewed:…
Marty Schwartz, the trader profiled in Jack Schwager’s Market Wizards, described a habit of cutting his position size sharply after a loss and trading small until he felt right again. It is one of the most quoted risk maxims in…
Legendary Traders · Market Wizards Victor Sperandeo Trader Vic, the Wall Street Master Who Made Loss Avoidance His Edge Wall Street since 1966 · Featured in The New Market Wizards · Trader Hall of Fame, 2008 Last reviewed: August 2026.…
The trade is working. Structure held, the trend is extending, and you have an unrealised 2R sitting on the screen. The obvious thought arrives: I should have been bigger. The next thought is the dangerous one: I can be bigger…
Trader’s Library · Book Review The Black Swan by Nassim N. Taleb Explore all 80 books in the Trader’s Library → Some books teach you a strategy. The Black Swan teaches you why most strategies eventually break, and why the…
You risk 1% per trade. Every position is sized from its stop distance, every stop sits at structure, every rule is honoured. Then a Tuesday arrives where seven positions are open at once, correlated news hits, and the account is…
Every version of the Turtle story is told from Richard Dennis’s side. He made the bet, he placed the advertisement, he taught the system, and he was proved right. William Eckhardt is the footnote. The man who said it could…
Trader’s Library · Book Review The Intelligent Investor by Benjamin Graham Explore all 80 books in the Trader’s Library → Here is the honest tension at the heart of reviewing this book on a trading site: Benjamin Graham would not…
Ask a struggling trader for their win rate and they will usually know it. Ask for their average win and average loss in R, and the room goes quiet. That silence is expensive, because a win rate on its own…
Trader’s Library · Head to Head Van Tharp vs Alexander Elder on Position Sizing Trade Your Way to Financial Freedom against The New Trading for a Living Trade Your Way to Financial Freedom Van K. Tharp · 1998 · 9.0/10…
SNAPSHOT · 4 AUGUST 2026 SpaceX reported its first quarterly results as a public company after the US close on Tuesday. Revenue of $7.81 billion beat consensus near $6.9 billion. Adjusted EBITDA of $3.5 billion beat $2.0 billion. The net…
Risk is a roulette wheel. You do not know where the ball lands, but you know the wheel: thirty-seven pockets, one zero, and a house edge you can compute to four decimal places. The outcome is unknown. The distribution is…
The Complete Trader’s Edge
252 encyclopedia terms, every article, every tool. Misspellings are fine.
Subscribe and get the 8-page Trading Plan Template free — includes pre-session checklist, trade journal, risk rules, and weekly review system. Plus weekly insights on psychology, strategy, and risk management.
No spam. Unsubscribe anytime. Free forever.