Taming Risk

When to ignore a stop-loss

Richard Farleigh

Always cut your losses when you are confused or desperate, says millionaire trader Richard Farleigh. But experience shows that stopping-out can sometimes be the worst thing to do.

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9 Trader's dilemma: The stop loss

Richard Farleigh

Cutting your losses is vital for survival, says millionaire trader Richard Farleigh. Knowing when to cut, and when to stay in a market is simply a matter of understanding your position.

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8 A nightmare investment

Richard Farleigh

Millionaire trader Richard Farleigh relives £100m of paper-losses during the tech crash, and how it changed his outlook. Never again, he says will he let emotion and stress get the better of him.

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7 What does it take to be a good risk taker?

Richard Farleigh

Determination and ambition is the short answer, says millionaire trader Richard Farleigh. And as an expert chess player himself, those analytical skills help - but they're not enough on their own.

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6 Was it worth it?

Richard Farleigh

You still need to be critical of your trades, even after you've made a profit, warns millionaire trader Richard Farleigh. Even successful ones might prove not to be worth the risks involved.

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5 Assess your risk - and then double it

Richard Farleigh

It may not be the most elegant of solutions, admits millionaire trader Richard Farleigh of his strategy of calculating risk, but it's a simple and logical one - and its main aim is to keep him in the game.

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4 Rough diversification

Richard Farleigh

Millionaire trader Richard Farleigh recommends a rough mix of assets in any portfolio.

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3 Finding opportunity where others fear to tread

Richard Farleigh

There's no such thing as an easy win any more, says millionaire trader Richard Farleigh, so you may have to look outside your comfort zone. In unproven start-ups or smaller companies, for example.

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2 Beware of investments that look too easy

Watch out for opportunities that offer above average returns but involve high risk. They might look like easy money, says millionaire trader Richard Farleigh, but they can still blow up in your face.

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1 When a trade goes wrong

Richard Farleigh

Don't beat yourself up about it, says millionaire trader, Richard    Farleigh. You can't judge the quality of a single trade by your profit or loss.