Momentum Trading Strategy

Notes

Risk Management & Position Sizing

Notes whose main point is limiting losses and deciding how much to buy and how much to risk on each trade.

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$KLAC ×
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KLAC is a chart every trader should study.

Strong trend. 50 day acting as support. Higher lows. Tightening price. Low volume during consolidation.

This is what real leadership looks like.

But the most important lesson here isn’t the breakout itself. It’s how risk was structured and financed once the trade started working.

Selling some into strength, reducing risk, and letting the market pay for future risk is what separates professionals from everyone else.

I broke this down in detail here, including how traders like Soros and Minervini think about financing risk at the trade level:

https://tradingmomentum.substack.com/p/how-professionals-finance-risk-and

Save the chart. Study it. The framework matters more than the ticker.

ArticleHow Professionals Finance Risk and Why Most Traders Never Do