Replies to post #109673 on WEALTH UNIVERSITY

[sonicwedgie]

Beer and pizza break hey Spence --- sounds like a good idea cant let the market play your emotions-- endless amount of opportunities still to come

[dam]

Spencer,

Sounds like you're trading too large in your positions if the volatility is shaking you like that. Here's the turtle-trader methodology for sizing a trade based on volatility and account size:

- Take 1 or 2% of your account size. That's your "account risk". This is the amount you're willing to completely flush goodbye.. that's why it's a low percent - you can always pyramid a position as it works in your favor.

- Get the ATR Wilder (or ATR) for the stock, eg for ETFC it is .118. This is the average movement of the stock in dollars per day for the period of the ATRWilder study (usually 14 days is used). In the turtle system, this is called N.

- Turtles usually used 2N stop when getting in. So a loss in ETFC if it went against you would be .236 a share. Using the guideline of account risk, this would give you your trade size.

Example 25K account, 1% risk: $250 max risk for trade.
250 / (.118 * 2) = 1050

So, you could buy 1,050 shares ($1,943 of stock) and stop out at 1.61 (2 times the average true range) and you've only lost 1% of your total account value.. AND you've also given the stock room to breathe. And if it works in your favor, add on.

(Turtles added on every 1/2N the stock moved for up to 3 or 4 total units. Each addition, they'd move up their stop to 2N below the most recent add - note that it could result in them getting stopped out earlier than if they didn't pyramid or move the stop.)

I strongly recommend the book The Complete Turtle Trader if you want some really good reading on risk and money management. The book really changed the way I look at trading.

Hope this helps. And yeah, sometimes a breather does wonders. Just watching instead of trading.

[BullRaid]

Spencer, my advice to you is to never buy all at one time. Always buy with the feeling that the price will fall after your first buy. Figure exactly how many shares you want and buy 1/3 at a time. A lot of times it's best to enter into a positon at the closing.

It's always smart to take a break, when your take a beating like this. Because you will start trading on emotions instead of being smart.

[Geaux Fish]

I would suggest in trading in smaller position for a start. It sound like you risking more than you would like to lose. Set a stop lost limit for yourself till you have a comfort zone. I mean a short one to 100 buck on a 1k buy. There is too many fish in the sea. Sitting there watching yourself lose your money will erode yourself confidence big time.

Not sure what platform you trade with or if you’re using stock charts to chose you buy. I assure you news does not mean a stock is going to move all the time. Most of the time it is always in the chart where it trading up to or down.

Make a smaller buy. Never buy before the first 1/2 hour of trading or even 45 min unless you sure of the move.

It’s kind of like learn the playing field before you lose all your cash. The best ways of doing this is picking a select amount of stock and watch them trade along with your indicators you have set up on the charts. Pay attention of the range they trade in. When you in the mode of wondering why it did that. Look up that indicator and read what it means. First read all your indicators to get an understanding what they mean in reference to the chart and the PPS any way.

For now to see some success go with a pick that chartinator may post or myself. Good examples watch for a set up like the

CHINA –EROC-- SUSQ –IO-- SRZ for a few of many. Notice how these had a ridge of candles and the stocks broke to the up side very slow than they break out for some giddy up mode kicks in.

Stay away from the cheap pop and drops these or only good for a day to 2 sometimes pending the set up. Now if you see the same set up on the cheapos before they go watch for the break and when it breaks the candle ridge trend line take it.

Hope this will help somewhat. These types of plays will build your comfort zone. Patience pays to wait for the right point of entry.
We or not perfect either but have a very good success rate and it did not come to us over night.

GLTY

GF