Ahh i see. thanks for the asnwer.
2% stop loss rule?
- Thread starter turkeyneck
- Start date
%% I did a study on GOOG, @ 500; looks like 8% worked much better than 7%. Good uptrend.....So I shouldn't day trade?
By the way, what is the logic for 7%-8%? I read O'Neil's book, at one time tried to implement his 8% rule and was stopped out on FB (at $20), GOOGL (at $500), AAPL (at $450 before split). I am still waiting for FB to get back down below $100 so I could get back in.
I no longer have an artificial 8% stop on my trades. Some coaching on this will be greatly appreciated.
Thanks.
Rule #1. Don’t trade with scared money
Rule #2. Risk = Reward
Therefore, 2% risk is a joke.
Rule #2. Risk = Reward
Therefore, 2% risk is a joke.
%%So I shouldn't day trade?
By the way, what is the logic for 7%-8%? I read O'Neil's book, at one time tried to implement his 8% rule and was stopped out on FB (at $20), GOOGL (at $500), AAPL (at $450 before split). I am still waiting for FB to get back down below $100 so I could get back in.
I no longer have an artificial 8% stop on my trades. Some coaching on this will be greatly appreciated.
Thanks.
Repeating pattern; you should borrow a copy of his stock trading/investing books. 7 or 8% is a bout max.Paul Tudor made much much more, with a 9.99% stop, but that's with crude oil trends, 1987 SIF......, 70% drawdown when he was learning to trade.And that NOT 9.99% a trade; its per month time stop. By the way if I wanted to trade/invest GOOGL, AAPL, FB, I do like QQQ; most likely never goes bankrupt,less commissions, less hassle, better up trends, maybe a bit less gain............................................................................. Sounds like your stops are WAAAAAAAAAY to tight , 8% on 500 is about $40. $500 was a google topping area, like SUPV had one before it tanked LOL. And 7-% or 8%, is an average, Mr Ichan lost a lot more than 9.99% 0n CHK
And if you try to buy FB @100 in a bull market[ most likely never happen] good way to lose a lot. I would not touch FB @ 100 in abull market unless I worked @ FB,+ then I would put more in QQQ, much more diversified bang for buck. I do some single stocks, but almost never low PE. 2015 ,GOOG, 2015, 12 month charts trended real well with an 8% stop;$450-$777; 20 dollar stop is a waste of time/money on that chart.%%
Repeating pattern; you should borrow a copy of his stock trading/investing books. 7 or 8% is a bout max.Paul Tudor made much much more, with a 9.99% stop, but that's with crude oil trends, 1987 SIF......, 70% drawdown when he was learning to trade.And that NOT 9.99% a trade; its per month time stop. By the way if I wanted to trade/invest GOOGL, AAPL, FB, I do like QQQ; most likely never goes bankrupt,less commissions, less hassle, better up trends, maybe a bit less gain............................................................................. Sounds like your stops are WAAAAAAAAAY to tight , 8% on 500 is about $40. $500 was a google topping area, like SUPV had one before it tanked LOL. And 7-% or 8%, is an average, Mr Ichan lost a lot more than 9.99% 0n CHK
Great post turtle. Clearly Many trading book smart folks post who lack real world experience.
%%
And some that did both,; good points ME . Come to find out, they were much more aggressive sellers + buyers, but they had NYSE comissions rates+ many millions. Later IBD founder, traded/invested with no volume restrictions[ meaning average daily stock volume of a few thousand LOL.] But looks like he made most of his money with much better average daily volume than that........................................................................................
And even stranger ; he never switched from red white + blue barcharts=to red/green candle charts like the WSJ did-LOLThat's mostly selection bias: the people who depended on it blew their accounts repeatedly and are no longer here to discuss it ...
Well, in the long run...That's mostly selection bias: the people who depended on it blew their accounts repeatedly and are no longer here to discuss it ...
On a more serious note, it’s interesting how little discussion about risk/portfolio management we get here. It’s one of the few things that can be shared safely (as opposed to actual alpha) and can definitely benefit from communal discussionsThat's mostly selection bias: the people who depended on it blew their accounts repeatedly and are no longer here to discuss it ...