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Trading

Risk Management

The practice of identifying, assessing, and controlling trading risks. In Elliott Wave, risk management relies on defined invalidation levels, position sizing, and portfolio diversification.

RELATED TERMS

Stop Loss
A predetermined price level at which a position is closed to limit loss. In Elli...
Position Sizing
The process of determining how many shares or contracts to buy based on account ...
Drawdown
The peak-to-trough decline in portfolio value before a new high is reached. Trac...
RetestAll TermsRisk-Reward Ratio