Episode 13 - The Key to Risk Management with Michael Hewson of CMC Markets
We were joined by Michael Hewson of CMC Markets to talk about Risk Management. He gave us some very solid advice on the importance of Risk management, of understanding why you are placing your stop loss where you are placing it and reinforcing Risk to Reward ratio lessons that we have learned.
He’s a very experienced trader and forecaster and we hope he will be back on the pod soon.
Tom got into an Oil trend using his Turtle Trading methodology but is worried the fundamentals mean it will run out of steam. He’s going to stop talking about it on the pod for a few weeks though as it isn’t that interesting until something happens!
Owen is not performing well because he hasn’t nailed down his stop loss and take profit and is struggling to sit on his hands when he is up in a trade. He keeps moving his stop loss to lock in profit to the detriment of total profit when he gets stopped out…
Owen’s Idea of the Week is to looks more closely at European and US banks that are undervalued on a book to price ratio. You can see the original idea in the Master Investor article here. He thought about buying an ETF based on the STOXX 600 Banks index. THIS IS NOT ADVICE. No, really, we have only just started doing this. Don’t copy our ideas. Unless you think it is a great idea and you do tonnes of your own research that backs it up. But still...