Risk Control is vital to long term profits in any merchanting plan.
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Risk Control Review
Quiz on ways to manage your risk of losing money while merchanting
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Question 1
When placing a long term trade on the breakout of a 1-2-3 bottom formation, only invest
A
5% of your total cash stack
B
10% of your total cash stack
C
20% of your total cash stack
D
30% of your total cash stack
E
50% of your total cash stack
Question 1 Explanation:
Consider this the initial part of your full position and conserve some cash so you can buy more of the item when you are proven correct.
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