I place it based on where support is if going long. I then
figure out how much money I want to use and then figure out how
much to risk. I try not to risk more than 5%-8%
capital.
Example UNG
I did 500 shares today at $18.10. Support was like
$18.20. I placed my market limit sell stop at $17.35
GTC. It's far enough down that sell stops won't hit it only
to head higher.
So 9K cashed used risking $375 dollars on 9K investment or
little bit over 4% of the 9K. Once I get couple dollar gain I
will move stop up .50cents.
Chris, what is a wide
unless you believe we started
Posted by junkmaylbox on 28th of Jan 2009 at 03:59 pm
Chris, what is a wide stop in your definition? 15, 20%?
I place it based on
Posted by cspirit on 28th of Jan 2009 at 04:06 pm
I place it based on where support is if going long. I then figure out how much money I want to use and then figure out how much to risk. I try not to risk more than 5%-8% capital.
Example UNG
I did 500 shares today at $18.10. Support was like $18.20. I placed my market limit sell stop at $17.35 GTC. It's far enough down that sell stops won't hit it only to head higher.
So 9K cashed used risking $375 dollars on 9K investment or little bit over 4% of the 9K. Once I get couple dollar gain I will move stop up .50cents.
This is how I do it. Money Management
Thanks, Chris. So you use
Posted by junkmaylbox on 28th of Jan 2009 at 04:24 pm
Thanks, Chris. So you use regular size stops (4 to 6% is what books would recommend). A wide stop would mean at least 10% to me.