ChartYourTrade and FindLeadingStocks present PART 2 of “Introduction to Risk Management & Position Sizing”
In this video, Adam Sarhan of http://sarhancapital.com and http://findleadingstocks.com discusses the D in his D.A.M.P. investment system. D stands for “Defense First” and shows you how to respect risk in the market.
Specifically, we’ll discuss:
I. Learn How To Identify The Market’s 3 States
1. Up Down Or Sideways
2. Interpret, Don’t Predict, Market Action
3. What Determines Price (Not Fundamentals Or Technicals)
4. Overview Of Market Tops & Bottoms (Technical & Fundamental Factors To look for)
II. Learn & Then Avoid Crowd Think:
1. The Stock Market is Counter-Intuitive In Nature
2. 5 Common Psychological Pitfalls Most People Make When “Analyzing” Stocks
3. Sarhan’s 1 Second Rule (Why the market takes off, right after you get stopped out)
III. 5 Technical & Fundamental Factors To Consider
1. Relative Price Action
2. How To Properly Use Moving Averages
3. Why Leading Sectors Matter
4. Why Leading Stocks Matter
5. How to Determine The Market’s True Value
Regardless of your investment style, strategy, or process, risk management is paramount to achieving long term success in the market. In fact, the single largest reason why most people blow up in the stock market is because they do not properly respect risk.
You’ve done your home work. You’ve found the “right” stock. Now what?