SharperTrades Academy

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Topic

Risk Management

A collection of 29 issues

Covered Calls Explained: How the Strategy Works, Profits, Risks, and Examples

A covered call is an options strategy where an investor sells call options on shares they already own to collect premium income. This guide explains how covered calls work, when they may fit, and what the trade-offs look like using clear examples.

Understanding Options Contracts: Calls, Puts, and How They Work

Options contracts are agreements tied to an underlying asset that give buyers the right to buy or sell at a predetermined strike price within a set timeframe. This article explains calls, puts, and how a standard options contract works in practice.

Options Trading Explained: Mastering Stock Options Strategies

Stock options are contracts that can express bullish, bearish, defensive, or volatility views with defined risk. This guide explains calls, puts, and five foundational strategies—using clear mechanics, realistic examples, and risk boundaries

Exploring Common Reasons for Selling Stocks

Knowing when to sell a stock is as important as knowing when to buy. This article explains common financial, market, and portfolio-related reasons investors choose to sell shares and how these decisions fit into broader market behavior.

Maximizing Trading Profits by Understanding Commissions and Fees

Commissions and fees are an unavoidable part of trading and investing. This article explains common investment expenses, how trading costs differ across brokers and products, and how cost awareness supports stronger long-term outcomes.

Placing an Order to Buy or Sell Shares

Placing a stock order involves working with a broker, understanding bid and ask prices, and choosing the right order type. This article explains how buy and sell orders work, how trades are executed, and how market mechanics influence outcomes.

Navigating Risk in Trading: Understanding Position Sizing

Position sizing determines how much capital is allocated to a single trade. This article explains why position sizing is central to risk management, how traders assess risk tolerance, and how structured sizing decisions support long-term trading consistency.

Understanding Stock Trading Order Types

Stock trading order types define how and when trades are executed. This article explains market orders, limit orders, and specialized order types, highlighting how execution speed, price control, and order conditions shape trading outcomes.

Trading Explained: Definition, Styles, Risks, and Practical Examples

Trading involves buying and selling financial instruments over shorter time horizons to capture price movements. This article explains how trading works, common styles and instruments, associated risks, and practical examples that show how trades unfold.

Mastering Portfolio Investment Returns

Understanding portfolio investment returns involves measuring how assets grow over time, accounting for cash flows, dividends, fees, and timing. Clear return calculations help investors evaluate performance, risk, and long-term effectiveness.