Posted by retirefire on 24th of Jun 2021 at 02:55 pm
Nice on CX, after reviewing my past trades its irritating to see
if I just held threw some pain more than the majority recovered for
profit. I guess it helps me see the need for a better plan.
Posted by frtaylor on 24th of Jun 2021 at 03:17 pm
Smaller position size is what has helped me. Also, I leave in
orders at support (9ema, 20, 50). That keeps me from pulling the
trigger on too many ideas and then having too many to manage.
Still, plenty of things I sold that went up the next day, hour,
etc.
Similar here, smaller position size is very helpful - it enables
the repeated experience and positive reinforcement of being able to
hold through a pullback and riding price back up.
A couple of issues that I experience... if stocks are bouncing
after stopping you out, are your stops too conservative given the
typical trading range of the stock (and logical support)?
That happens to me when I take too big a position and try to
manage risk by setting stops tighter than what price actions
indicates is a reasonable stop.
I used to consider max % loss when planning my stops. For
me, doesn't work so well. Now I more often think about max $
loss. If I'm going to get uncomfortable if I'm down $300 on a
single position, and a logical stop is 4% below current price, then
I shouldn't be taking a position that exceeds $7,500. If the
logical stop is 6% below current price, then max position size
should be $5k.
I also look at average daily moves of a stock. If
something is high beta and moves 5, 7 or 10% on a regular basis, I
have no business getting into it if I feel my stop has to be just a
few % lower than current price. One average intraday move
could stop me out. I'm more confident and trade better when
taking positions that would require at least a couple days' worth
of avg. decline to stop me out.
How about CX today, good
Posted by frtaylor on 24th of Jun 2021 at 02:38 pm
How about CX today, good move after a deep pullback. Glad I held my shares.
Nice on CX, after reviewing
Posted by retirefire on 24th of Jun 2021 at 02:55 pm
Nice on CX, after reviewing my past trades its irritating to see if I just held threw some pain more than the majority recovered for profit. I guess it helps me see the need for a better plan.
Smaller position size is what
Posted by frtaylor on 24th of Jun 2021 at 03:17 pm
Smaller position size is what has helped me. Also, I leave in orders at support (9ema, 20, 50). That keeps me from pulling the trigger on too many ideas and then having too many to manage. Still, plenty of things I sold that went up the next day, hour, etc.
Similar here, smaller position size
Posted by rjdst on 24th of Jun 2021 at 03:53 pm
Similar here, smaller position size is very helpful - it enables the repeated experience and positive reinforcement of being able to hold through a pullback and riding price back up.
A couple of issues that I experience... if stocks are bouncing after stopping you out, are your stops too conservative given the typical trading range of the stock (and logical support)? That happens to me when I take too big a position and try to manage risk by setting stops tighter than what price actions indicates is a reasonable stop.
I used to consider max % loss when planning my stops. For me, doesn't work so well. Now I more often think about max $ loss. If I'm going to get uncomfortable if I'm down $300 on a single position, and a logical stop is 4% below current price, then I shouldn't be taking a position that exceeds $7,500. If the logical stop is 6% below current price, then max position size should be $5k.
I also look at average daily moves of a stock. If something is high beta and moves 5, 7 or 10% on a regular basis, I have no business getting into it if I feel my stop has to be just a few % lower than current price. One average intraday move could stop me out. I'm more confident and trade better when taking positions that would require at least a couple days' worth of avg. decline to stop me out.
thanks rjdst, good points.
Posted by retirefire on 24th of Jun 2021 at 03:58 pm
thanks rjdst, good points.