(This post was last modified: 2013-03-22, 05:04 AM by Locked in.)
RE: Stop Loss Positioning Guide
Nice work Isa- Being able to see some of his actual picks on a chart that is a lot more visible than in the book is really going to help me in a number of ways.
"The pivot low used is not visible on the weekly chart, which shows that it probably doesn't have to be the last major pivot, just the last notable pivot low, but this will become clearer as I go through these examples."
Your quote here is something I have been thinking the whole time as sometimes you see a great looking breakout but the stop loss is way too low going by the weekly chart's major pivot. Great to know this little tidbit.
Again, thanks-
Also really nice to know the average ATR where the stops are at. Looks about 2-3 for the trader and 4-5 for the investor. I wonder what kind of importance he puts on keeping it in such a range. I remember him saying in the book that if you see 3 A+ stocks that you should pick the one isn't too far (% wise from the current price). ie- you wouldn't want to risk 15% when one is there that you could be risking 5%. I wonder if he had to pass on some better picks to meet this standard as these picks, like you say, are not A+ picks.
Another thing that I see, and you also mention, is the serious lack of volume. I remember you saying back on the t2w forum about my Yahoo pick that you weren't sure if mattered as much these days because of the big institutional buying but it seems like he just abandoned that rule completely. Not sure what exactly that means.
Not sure if you did this at some point in the past but if I might ask...Do you think you could send a list of the picks as I would like to see how many different sectors and how many from each sector that he chose.
Thx