one last comment about CHFS as someone asked me how do you
determine what amount to put into low priced stocks like CHFS.
Again it's not about dollar amount it's about what you are
willing to risk. The person used $100,000 for example. Well
using my stop example on CHFS assuming you used a 9 cent initial
stop: and $100,000 would buy roughly 200,000 shares - if that
9 cent stop was hit you would be looking at a -$18,000 you are
risking!! Are you wililng to risk $18K to $20K on a 50 cent stock
if you are wrong and your stop is hit? Hell no! Again
it's common sense guys - how much are you willing to gamble on a
trade - that's what sets your shares and dollar amount you put into
it. You don't use an arbitrary dollar amount like $100K for each
trade you do - the dollar amount is set by your stop relative to
your entry price and how much you would lose if your stop is
hit.
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one last comment about CHFS
CHFS broke out and came back inside the pattern. BBX ...
Posted by matt on 10th of Jul 2020 at 10:07 am
one last comment about CHFS as someone asked me how do you determine what amount to put into low priced stocks like CHFS. Again it's not about dollar amount it's about what you are willing to risk. The person used $100,000 for example. Well using my stop example on CHFS assuming you used a 9 cent initial stop: and $100,000 would buy roughly 200,000 shares - if that 9 cent stop was hit you would be looking at a -$18,000 you are risking!! Are you wililng to risk $18K to $20K on a 50 cent stock if you are wrong and your stop is hit? Hell no! Again it's common sense guys - how much are you willing to gamble on a trade - that's what sets your shares and dollar amount you put into it. You don't use an arbitrary dollar amount like $100K for each trade you do - the dollar amount is set by your stop relative to your entry price and how much you would lose if your stop is hit.