How to manage your positions and risks with Position Management?
The first thing to do is to allocate money into your simulated account before you start trading or recording your existing positions.
To allocate capital, tap “Capital”, and then tap the + sign to deposit the amount. It is suggested that you enter the date as this will help you set up a record of the existing position. The amount you allocate should closely resemble your own asset status.
The second thing to do is to input your existing positions. To do so, hold your device vertically. At the bottom you’ll find the “input position”. In it, record your positions one by one. Though it may be tedious, it is recommend you record your trading transactions in as much detail as possible. The system will calculate your gains and show them together with the stock chart.
The third thing to do is to determine your risk management structures.
Risk Management Calculation
A balanced position helps to reduce risk. We recommend that risk of each individual stock be less than 2% of the total assets you allocate to stocks.
Earning Channel automatically calculates and continuously updates risk levels. The system alerts the user if the risk of any position exceeds 2% of current net assets.
In the equation below, SL stands for stop loss percentage.
If we allocate assets into five even lots, each to buy a different stock, and set SL to 10% for each stock, then the risk for each stock is.
Therefore, the recommended number of stocks is no less than five when we set the risk alert to 2%. The risk amount, percent, and alert are shown in Risk. In the example below, it shows we have allocated too much to FB.
Position management keeps track of the performance of unrealized gain. Total Assets includes Market Value plus Account Balance (cash remaining).