Senior Market Analyst Brett Manning (ChartTrader - CHART) kicks off part one of our three-part educational series on risk and money management. In this video, CHART quickly covers the most important concepts for effectively managing risk and exposure as a short-term trader, including:
* How to gauge size for a trading setup as a function of stop placement.
* How to define the concept of a setup in terms of risk and a ratio to potential gains.
* Why cutting losses and letting profits run is instinctively difficult, but crucial.
* Why you have to understand the time frame of your trading setup and adjust risk and size accordingly.