How can you have a 1% stop? You would be stopped out in 5 minutes on many trades. How can you have a 1% stop on a 20 or 30c stock? Is that 1% of your total kitty and portfolio? I am putting very wide stops on (15-20% maybe) but selling before that, if it doesnt look right. I will have alarms at certain levels. I watch market depth even though that can be deceptive sometimes.
PRESUMABLY YOU PICK YOUR ENTRIES WHEN THE CHARTS ARE FAVOURABLY ALA QUILLAMAGGIE, JESSE STINE AND MARK MINERVINI. That way you would avoid having losers on your entries. When the stop losses kick in you are fine. Just let the winners run.
1% of your capital is generally what professional traders use as a maximum. Covered in previous episodes. If you can get a full position size on with a tighter stop and half the risk - then even better. Anyone using a stop wider than 12-15% clearly is trying to avoid being wrong which is exactly what most successful traders don't do. The best traders accept that they are going to be wrong more than right - they just make sure they make a lot more when they are right by keeping losses always contained and small and letting winners run and hence win big. Hope this helps and makes sense. Read Minervini maths in his books. Deepak Uppal does a great presentation on Trader Lion covering this whole concept of risk management recently with plenty of good examples. worth a look imo.
@@gloves3780 Thanks Gary. I am a bit of a slow reader. I love TH-cam videos for learning. Thats why I have really enjoyed your videos. Are there any videos that you recommend? I will do a search on TH-cam. I will get the books as well and read. I have been watching videos on Elliott which has been good.
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Gary do you use ATR in your trading rules ?
yeah the buy and sell commissions must be insane. this really is getting into day trading which is high risk.
How can you have a 1% stop? You would be stopped out in 5 minutes on many trades. How can you have a 1% stop on a 20 or 30c stock? Is that 1% of your total kitty and portfolio?
I am putting very wide stops on (15-20% maybe) but selling before that, if it doesnt look right. I will have alarms at certain levels. I watch market depth even though that can be deceptive sometimes.
PRESUMABLY YOU PICK YOUR ENTRIES WHEN THE CHARTS ARE FAVOURABLY ALA QUILLAMAGGIE, JESSE STINE AND MARK MINERVINI. That way you would avoid having losers on your entries. When the stop losses kick in you are fine. Just let the winners run.
1% of your capital is generally what professional traders use as a maximum. Covered in previous episodes. If you can get a full position size on with a tighter stop and half the risk - then even better. Anyone using a stop wider than 12-15% clearly is trying to avoid being wrong which is exactly what most successful traders don't do. The best traders accept that they are going to be wrong more than right - they just make sure they make a lot more when they are right by keeping losses always contained and small and letting winners run and hence win big. Hope this helps and makes sense. Read Minervini maths in his books. Deepak Uppal does a great presentation on Trader Lion covering this whole concept of risk management recently with plenty of good examples. worth a look imo.
@@gloves3780 Thanks Gary. I am a bit of a slow reader. I love TH-cam videos for learning. Thats why I have really enjoyed your videos. Are there any videos that you recommend? I will do a search on TH-cam. I will get the books as well and read. I have been watching videos on Elliott which has been good.
1% of portfolio
@@marksmith3943 anything with Minervini is always a good watch on youtube. Oliver Kell, Matt Caruso and Trader Lion has so many great free videos.