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There are many different ideas about what it takes to succeed in trading.

Developing a statistically-significant strategy, learning market structure, developing self-control, and learning to think in probabilities are all some of the qualities traders need to assimilate into their everyday lives to become professionals, but all effort would be futile without one key quality: risk management.

Consider the trader who can predict, with relatively good accuracy, what the market is going to do in the short term. To an outsider, this ability would mean success in the markets, but traders know better. Even if your accuracy is a staggering 90%, you would still lose money if, on average, your losses are ten times the size of your winners. This is not conjecture; its math.

In short selling, the importance of risk management is amplified, as losses are theoretically infinite when trading to the downside. Additionally, short sellers experience complications that long traders do not, adding to complications to an already difficult task of consistent risk management.

Aside from practice and study, selecting a short-friendly broker can help traders significantly improve their risk management and instill the principles necessary for long-term success in the markets. Trader Stephen Johnson found his help through TradeZero, a broker with a host of favorable short-selling features.Takeaways From The TradeZero-Benzinga Interview

In an interview with Benzingas Spencer Israel, Johnson and TradeZero CEO Daniel Pipitone tackle the subject of risk management in short selling.

The episode starts off on a sobering note. Trading isnt easy, says Johnson. Lets just say that first. For anyone who has attempted to trade for a long enough period, this is an opinion that resonates. You will often find it scattered around the web where the concept of trading arises in the discussion, but it is also reiterated through more formal sources like academic studies.

The easiest way to control risk is to make small trades, says Johnson. When traders first start, they must start with a sum of money theyre comfortable handling. This sum is different for each trader. If traders begin with too large a sum, emotions will sink in, prompting irrational decisions.

Were always encouraging people to set short stops, says Pipitone. TradeZero empowers the trader by allowing the broker to manage risk for them. For example, traders can set daily loss limits, which prevent them from trading after reaching a loss threshold.

Make Keep It Simple, Stupid (KISS) rules, adds Johnson. KISS is a design principle with U.S. navy origins, but the framework is relevant to trading. A simple rule like dont trade past 10:00 AM is a KISS-approved risk management strategy that could save opening-bell traders tons of money. Applying KISS rule-making can help prevent many unnecessary losses.

Take small losses, concludes Pipitone. This is one of the most repeated truisms on Wall Street, and for good reason: It helps. Trading requires a detachment from ones ego and pride, and learning to take losses gracefully is key to sustaining a healthy win-to-loss ratio, a crucial element in risk management.Picking A Short-Friendly Broker

Aside from the daily loss limits, TradeZero offers a variety of short-selling functions to the retail community.

The broker specializes in producing some of the hardest-to-find locates on the market, meaning traders have a much higher likelihood of finding stocks to borrow for their short positions. This extensive locating ability comes with commission-free trades (with a few exceptions) and no compromise on the quality of execution prices.

TradeZero is taking its short-selling abilities to new heights with its patent-pending credit back feature, which allows traders to sell back locates they did not use or no longer need to other TradeZero traders. TradeZerp won the Benzinga Global Fintech Award for Best Brokerage for Short Selling in 2020, 2021, and recently 2022.

Want to take a stab at short-selling? Click here to learn more about short-selling with TradeZero.

Featured Photo by Dimitris Chapsoulas on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice or a recommendation as to any security or trading strategy. Trading securities can involve high risk and potential loss of funds. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses. Any views or opinions expressed in the content are those of the author or the interviewed third parties and do not necessarily reflect the views or opinions of TradeZero or its employees. Daniel Pipitone is a co-founder of TradeZero. Stephen Johnson is a paid marketing partner for TradeZero and may receive compensation for introducing customers to TradeZero.

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French woman faces online mockery after being conned out of £700,000 by fake Brad Pitt

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French woman faces online mockery after being conned out of £700,000 by fake Brad Pitt

A French woman has been mocked on social media after losing more than €830,000 (£700,000) to scammers posing as the Hollywood actor Brad Pitt.

The 53-year-old interior designer, known only as Anne, thought she was in a year-long romantic relationship with the Fight Club and Ocean’s Eleven star.

But after opening up about her ordeal to reporters, she suffered so much trolling that the French television channel TF1 had to pull her interview.

“The story broadcast this Sunday has resulted in a wave of harassment against the witness,” TF1 presenter Harry Roselmack wrote on X.

“For the protection of victims, we have decided to withdraw it from our platforms,” he added.

At the time of the broadcast, Anne was reported to have been suffering from severe depression.

Anne told TF1’s Seven to Eight show that, after starting to use Instagram for the first time, she was contacted by someone posing as Pitt’s mother.

More on Brad Pitt

“She told me that her son needed someone like me,” Anne explained. The scammers messaged her again several days afterwards, this time posing as Brad Pitt.

Anne said she began talking to the fake version of the actor sometime in February 2023 on different social media and messaging platforms, including WhatsApp.

Images from the TF1 programme have been widely shared online, showing a number of AI-generated images of Brad Pitt in hospital, designed to trick Anne in believing she was interacting with the 61-year-old actor.

"Wolfs" Red Carpet - The 81st Venice International Film Festival
Image:
Brad Pitt with partner Ines de Ramon at the Venice film festival. File pic: AP

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‘I really didn’t understand’

“At first I said to myself that it was fake, that it’s ridiculous,” Anne explained to TF1. “But I’m not used to social media and I didn’t really understand what was happening to me.”

Scammers began requesting money, telling Anne that Brad was in hospital with kidney cancer and needed money for treatment. He claimed his bank accounts were frozen during divorce proceedings with ex-wife Angelina Jolie.

She eventually agreed to transfer a large sum of money to a Turkish bank account after receiving an email from the fake star’s “doctor”.

Scammers ‘deserve hell’

Anne said she finally realised she had been scammed after she saw pictures of the real Brad Pitt with his current partner, Ines de Ramon.

“I ask myself why they chose me to do such harm like this?” she told TF1. “I’ve never harmed anyone. These people deserve hell.”

Police are investigating the scam, but the interview has triggered some social media posts making jokes at Anne’s expense.

French newspaper Sud Ouest reported that Anne was going through divorce proceedings with a millionaire entrepreneur at the time and needed hospital treatment for severe depression following the scam.

A spokesperson for Brad Pitt told Sky News: “It’s awful that scammers take advantage of fans’ strong connection with celebrities.”

They added it was “an important reminder to not respond to unsolicited online outreach, especially from actors who have no social media presence”.

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Environment

Biden’s $635M good-bye, Trump’s DOT pick will investigate Tesla, and a look ahead

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Biden's 5M good-bye, Trump's DOT pick will investigate Tesla, and a look ahead

On today’s episode of Quick Charge we explore the uncertainty around the future of EV incentives, the roles different stakeholders will play in shaping that future, and our friend Stacy Noblet from energy consulting firm ICF stops by to share her take on what lies ahead.

We’ve got a couple of different articles and studies referenced in this forward-looking interview, and I’ve done my best to link to all of them below. If I missed one, let me know in the comments.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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Environment

In December, EV sales were still up and incentives were still sweet – Kelley Blue Book

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In December, EV sales were still up and incentives were still sweet – Kelley Blue Book

EV sales kept up their momentum in December 2024, with incentives playing a big role, according to the latest Cox Automotive’s Kelley Blue Book report.

December’s strong EV sales saw an average transaction price (ATP) of $55,544, which helped push the industry-wide ATP higher, according to Kelley Blue Book. The December ATP for an EV was higher year-over-year by 0.8%, slightly below the industry average, and higher month-over-month by 1.1%. Tesla ATPs were higher year-over-year by 10.5%.

Incentives for EVs remained elevated in December, although they were slightly lower month-over-month at 14.3% of ATP, down from 14.7% in November.

EV incentives were higher by an impressive 41% year-over-year and have been above 12% of ATP for six consecutive months. Strong sales incentives, which averaged more than $6,700 per sale in 2024, were one reason EV sales surpassed 1.3 million units last year, according to Cox Automotive, a new record for volume and share.

(My colleague Jameson Dow reported yesterday, “In 2024, the world sold 3.5 million more EVs than it did in the previous year … This increase is larger than the 3.2 million increase in EV sales from the previous year – meaning that EV sales aren’t just up, but that the rate of growth is itself increasing.”)

Kelley Blue Book estimated that in December, approximately 84,000 vehicles – or 5.6% of total sales – transacted at prices higher than $80,000 – the highest volume ever. KBB lumps gas cars and EVs together into this luxury vehicle category, so this is where Tesla Cybertruck is slotted.

However, Tesla bundles sales figures of Cybertruck with Model S, Model X, and Tesla Semi(!) into a category it calls “other models,” so we don’t know for sure exactly how many Cybertrucks Tesla sold in Q4, much less in December. However, Electrek‘s Fred Lambert estimates between 9,000 and 12,000 Cybertrucks were sold in Q4, and that’s not a stellar sales figure.

What will January bring when it comes to EV ATPs? What about tax credits? Check back in a month and I’ll fill you in.


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