Setting Market Exposure

How to turn your read of the market into a simple plan for how much of your account to have invested, and how to step in and out gradually.

Exposure is a dial, not a switch

Exposure is the share of your trading account invested in stocks. A trader who is 100% invested has all the money working; 50% means half is in cash. Instead of flipping between all-in and all-out, many traders turn a dial: more exposure when the market is healthy, less when it weakens.

This one habit can matter more than any single stock pick. Being mostly in cash during a correction protects both your money and your confidence, so you are ready when the next uptrend begins.

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