♟ Is Your Portfolio Positioned for Profits?

Make sure you avoid one of the most common mistakes beginner traders make. [Trade of the Day Logo] [View in browser]( [Image of a man about to topple over lettered wooden blocks forming the word Risk]( ["Unless you have these measures in place, a winning stock can actually be a portfolio killer."]( Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance [Karim Rahemtulla] Earlier this week, my colleague Bryan Bottarelli closed out some massive winners, including a 205% overnight gain on Estée Lauder (EL) when the stock crashed after reporting earnings on Wednesday. The shares fell by over 18%. [You can check out Bryan's full breakdown of that trade here.]( This big winner prompted me to remind you of a critically important aspect of trading... and that's position sizing. Position sizing is a crucial practice we use to minimize risk if a trade doesn't go our way. For example, let's say you'd owned shares of EL... Sure, you would've taken an 18% hit overnight this week. But most of the damage likely would've been done long before this week. The stock has fallen from around $280 to under $120 in the past 52 weeks. [Estée Lauder in Free Fall Over the Past Year]( That would've been a portfolio killer if you didn't have protective measures in place... and position sizing should be at the forefront of those measures. Position sizing involves determining the amount of capital you're going to allocate to a specific investment or trade. The goal of position sizing is to manage risk and maximize potential returns. [I Call Them "100-Percenters"]( [Marc guarantee]( "100-percenters" are dividend stocks that raise their dividends so high and so fast that they can ultimately deliver annual payouts as big as - or bigger than - the amount of cash you started with. In other words, if you had put in $1,000... you could've collected $1,000 in dividends per year. If you had put in $10,000... you would've collected $10,000 per year! [Click Here to See How It Works]( Here's how to approach position sizing and risk management with your investments: 1. Determine your risk tolerance. Before you invest, assess how much risk you are comfortable with. This depends on factors like your financial goals and your time horizon. 2. Calculate your position size. Once you've assessed your risk tolerance, you can determine the size of your investment. A common guideline is to limit the size of any single position to a certain percentage of your total portfolio, typically ranging from 1% to 5%. I recommend no more than 4% in any single position. 3. Set stop loss orders. Implementing stop loss orders can help limit potential losses. These orders specify a price level at which you will sell the investment if it moves against you. The distance between your entry price and your stop loss can also influence your position size. I generally recommend a 25% stop loss, which means you would sell the investment if it were to close 25% below your entry price. 4. Diversify. Avoid putting all your capital into a single investment, asset class or sector. Diversifying can help you spread out your risk. 5. Adjust your position sizes based on volatility. Consider the volatility of each asset you're investing in. If you're investing in more volatile assets, taking smaller positions can help you manage risk more effectively. 6. Regularly review and rebalance your portfolio. Periodically review your investments and adjust your position sizes as your portfolio's value changes and your risk tolerance evolves. [Logo] YOUR ACTION PLAN Position sizing is a key part of risk management. It helps you protect your capital while still setting yourself up for potential gains from your investments. Tailoring your position sizes to your individual financial situation and your goals is essential. This is something I preach almost daily in [The War Room]( and it's helped members become much savvier investors who know how to hang on to their capital when things don't go their way. It's strategies like this that allowed Bryan and me to post an 82% win rate in October, and right now we're guaranteeing you'll receive 252 winning trades in your first 12 months of War Room membership. [Learn more here.]( [Forget Fusion... This REAL Nuclear Breakthrough Could Mean 10X Gains]( [Nuclear power station cooling tower]( A real nuclear miracle is about to take Wall Street by surprise... Because an energy breakthrough could 10X this $3 stock over five years. After a key December announcement... you may miss your chance at a piece of the action. [Get the Details Here (Before You're Too Late!)]( [Smile] FUN FACT FRIDAY M&Ms Are Named After the Businessmen Who Created Them. Forrest Mars and Bruce Murrie created the famous candy, but apparently the two didn't have the best relationship. Mars leveraged Murrie out of his 20% of the business before M&Ms became the biggest-selling sweet in the U.S. Ouch. INSIGHTS YOU MAY HAVE MISSED [Estée Lauder]( [The Anatomy of an Overnight Super-Speculation]( [Estee Lauder]( [This Pick Is Building a Backlog]( [2 Tech Setups + Santa Claus Rally Thoughts]( [Why I'm Bearish on Big Tech]( [Illustration of a stick figure being rescued]( [2 Market Correction Hedges]( [Instagram]( [Follow Us on Instagram!]( [FACEBOOK]( [X/TWITTER]( [Trade of the Day App Banner]( [Monument Traders Alliance] Monument Traders Alliance, LLC You are receiving this email because you subscribed to Trade of the Day. To unsubscribe from Trade of the Day, [click here](. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. Forgot your password? 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