I have modified my risk management/selling rules for these more volatile and lower priced plays , stops are essentially placed using same logic as my over 100$ plays but instead of waiting for 2R to sell half, I will do so at 1R instead and then at that time I will adjust stop to cost on balance . I think that's a smart move . If the trend continues I will do my best to add to positions with same logic. The remaining shares on successful trades will have their stops raised as trend continues .
Rule of thumb for now will be : if stop is greater than 10% , then will sell half at 1R instead of 2R and then adjust stop on balance to cost . Normally, I day trade these lower cost names and then selling half at 2R still applies because I am placing tight stops still but if swing trading tight stops are trickier in my opinion. For the next 2 months ( at least ) my work, which is not trading :), is pretty booked up and swing trades will have to suffice but I prefer day trading for stuff like this because I can keep stops tighter. These new sell rules is my way of adapting to current work situation while still trading. Also, please be aware, these lower priced names I am taking much smaller positions , though they do often produce a similar profit to the higher priced larger position plays they can also lose you too much in a very short period so need to respect risk or blowing your account is certainly a risk .
I previously have focused on the larger priced stocks in uptrends and still am trading this strategy but I am going to put a little more effort into these lower priced plays because I see them as an opportunity to exploit and am getting better at identifying them ( mostly using volume and price action but news is good to look at with that in conjunction ).
I may change the new rule in the future but for now it will give me some routine to play lower priced stuff and allow me to accumulate and grow a position still while still paying myself early.
Rule of thumb for now will be : if stop is greater than 10% , then will sell half at 1R instead of 2R and then adjust stop on balance to cost . Normally, I day trade these lower cost names and then selling half at 2R still applies because I am placing tight stops still but if swing trading tight stops are trickier in my opinion. For the next 2 months ( at least ) my work, which is not trading :), is pretty booked up and swing trades will have to suffice but I prefer day trading for stuff like this because I can keep stops tighter. These new sell rules is my way of adapting to current work situation while still trading. Also, please be aware, these lower priced names I am taking much smaller positions , though they do often produce a similar profit to the higher priced larger position plays they can also lose you too much in a very short period so need to respect risk or blowing your account is certainly a risk .
I previously have focused on the larger priced stocks in uptrends and still am trading this strategy but I am going to put a little more effort into these lower priced plays because I see them as an opportunity to exploit and am getting better at identifying them ( mostly using volume and price action but news is good to look at with that in conjunction ).
I may change the new rule in the future but for now it will give me some routine to play lower priced stuff and allow me to accumulate and grow a position still while still paying myself early.
Comment:
I am typically not using chandelier stop ( maybe about 20% of the time ill use it to set a stop tighter than 21 ema) , but I included it on this chart because Its a good tool worth checking out imo.
艾力克~