RE: Stage Analysis Beginners Questions
(2020-01-19, 09:58 PM)hummigbird Wrote: I'd be curious to know how people are putting stops on their stocks now, with the market going so crazy. There are pretty wide gaps between stock price and 30 week MA. If I use that as the price point, the loss would be pretty significant. I'd rather take profits sooner. What are others doing?
Focus on the quality of setups always, and that the entry point meets the methods four main requirements at least. I tend to focus on stocks making volatility contraction patterns before the breakout, where price has consolidated over a reasonable period, and then they always have to be within 2x the 52 week Average True Range from the 50 day moving average and the most recent swing low in order to be buyable. So don't chase stocks that are too far from support, as risk management should always be the first consideration.
Novices worry about what you can make on a trade. Professionals worry about what they could lose on the trade. So always take a risk first approach, and you'll do much better in your account.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.