Your right it is 20% of the trade but It's 2% of your total portfolio. If your portfolio consists of 60,000 and you only trade with 6k of it (10%) than your 20% loss would be 2% of your entire portfolio. Not that I have 60k in my acct tho. I actually found this on line and thought it was a good example of money managment. I've never used stops before cause I'm usually long on a trade. But I'm thinking about swing trading 25% of my position on TSHO.
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