This is the first idea I am publishing in Tradingview and I decided to select the topic of risk management, specially after the dramatic increase and subsequent decrease on prices which we have seen in TLRY and other weed stocks this week, all mostly happening in 48 hours.
If you just started trading and got involved on weed stocks, you probably been though a very painful experience because a lot of your precious money is probably gone. As trading becomes more and more popular, many new people join the market but without understanding the very basics of it and without considering risk management.
If you are one of those new joiners, I strongly advise you to improve your knowledge about risk management. here some basic rules:
1. Set a stop-loss!
2. Position size = (risk*budget) How much money you invest.
3. Entry point : When to buy
4. Exist point: When to sell.
To put it very simply, never buy a stock because it has gone up or sell one because it has gone down! I think the case of TLRY is a classic example of this.
So, what I described here here is just very basic. You should and must educate yourself about risk management, otherwise trust me you will regret your experience as trader.
PS: If you are new to this, I recommend you to read a very old but classic book about investment called "The intelligent investor" by Benjamin Graham. Let me be very clear that trading is not the same than investing. Which are you. really?
Have a good weekend!