Risk Management 101 | PB University LITE 07/50

Today we're going to talk about something that might not sound as exciting as picking the next hot stock, but trust me, it's just as important: risk management. Now, I know what you're thinking. 'Risk management? That sounds about as exciting as watching paint dry.' But let me tell you, it's just as important as learning how to chart and read fundamentals. In fact, it's probably even more important. Because let's be honest, nobody likes losing money. I’m Meta Matt, Director of Education at Pennybois University, and welcome to Class #7 of Pennybois University LITE!!

April 27, 2024
Meta Matt
Check Out The Class Video

Stock Market Indices

I’m Meta Matt, Director of Education and welcome to PB University LITE! This is a 50 Class Trading 101 Series geared towards both new and veteran traders alike! We go over everything from Trading Psychology, Technical Analysis, and Options Trading to Commodity Trading, Forex, and more!! This 50 Class series is not designed be taken in order, it is instead designed for traders to browse and pick which classes interest them. I will include the list of classes at the bottom of this page.

Start Trading With Webull: Free Stock Shares
Custom Trading Indicator DISCOUNT: Try StocksBuddy Today
Get A Trading Coach, Premium Alerts, Education, and Community:
1 Month Membership
90 Days (Save 10% Per Month)
1 Year (Save $279)

Click The Link Above For A Discount!!

Risk management is the process of identifying, assessing, and prioritizing risks and taking steps to mitigate or eliminate them. Basically it’s figuring out what risks there are out there in the Market, and finding ways to fit the amount of risk you are willing to expose to your portfolio with your goals, experience, and trading mentality. So, what are some ways traders can use risk management to their advantage? 

One basic strategy is to use stop-loss orders. A stop-loss order is a type of order that automatically sells a stock when it reaches a certain price, and it's a great way to limit risk. Let's say you buy a stock at $50 and you set a stop-loss order at $45. If the stock drops to $45, the stop-loss order will automatically sell the stock, preventing you from losing more money than you're comfortable with.

Another strategy is to diversify your portfolio. This means spreading your money across multiple stocks, sectors, and even different markets. This way, if one stock or sector takes a hit, it won't affect your entire portfolio. We went over that in last Pennybois University LITE’s class. 

It's also important to have a plan and stick to it. Before you make a trade, know your entry and exit points, and have a plan for how you'll handle a loss. This way, you'll be less likely to make impulsive decisions based on emotions. 

Remember, risk management is not about avoiding risk altogether, it's about finding the right balance and making sure you're comfortable with the level of risk you're taking on.

Check Out Our Discord!!

Free Trading Discord!!

PB University LITE Class List

1) Trading Terminology
2) Stock Market Indices
3) Common, Preferred, and Penny Stocks
4) Diversification of Assets
5) Fundamental Analysis Made Easy
6) Technical Analysis Made Easy
7) Risk Management In The Market
8) Portfolio Management
9) How To Follow Market News
10) Trading Psychology
11) Options Explained
12) The Greeks In Options Trading
13) How To Short Sell Options
14) Covered CALLS
15) Spread Trading
16) Online Brokers for Options Trading
17) Implied Volatility Calculators & Tools
18) Protective PUTS
19) Iron Condors
20) Straddles
21) Reading Level 2
22) Taxes
23) Trading Psychology Techniques
24) The Art Of Trading
25) Becoming A Jedi In The Stock Market
26) Futures Trading Explained
27) Commodity Trading 101
28) Regulatory Environments
29) How To Become A Millionaire
30) $100K In 100 Days
31) Wash Sale Rule
32) Behavioral Finance Part 1
33) Behavioral Finance Part 2
34) 5 Charting Indicators
35) Fair Value Gap
36) Insider Trading and Market Manipulation
37) Stock Chart Types
38) Moving Averages 101
39) Base vs Precious Metals
40) Electricity Trading 101
41) Trading Brokers 101
42) 5 Trading Strategies
43) 85% Trading Rule
44) Are Win Rates A Scam?
45) Futures Trading 101
46) ATR Indicator Strategy With The Greeks
47) MACD Indicator 101
48) Bollinger Bands Indicator 101
49) Wedges, Triangles, Flags and Pennants
50) RSI Divergence 101

Full Playlist


PB Alerts is a group of experienced traders dedicated to providing hedge fund quality trade alerts without the cost.