Something you have no control over.
I priorize the things I can control.
How do famous swing traders like Dan Zanger size up so fast?
- Thread starter excrypto
- Start date
I priorize the things I can control.
What's that?
What do I trade?
How much do I risk?
Where do I get in?
How much do I trade?
Where do I get out?
So position size is #4 on your list.
#2 and#5 sounds like a STOP(also #2 on my list)
#3 sounds like a price prediction(#1 on my list)
It's actually #2. The amount I risk is based on position size.
I don't have complete control over where price will be after a gap up or down but I do have complete control over how much I trade.
Like I said I focus on what I can control. (price gaps are out of my control. It's something I have to live with.)
#5 involves my stop on the downside but the upside is flexible and relies on trend breaks.
I suppose you could call #3 a price prediction. As a momo trader I'm speculating that the price will continue moving in the direction that it is trending. If it doesn't I'm stopped out and take a small loss. If I followed my plan I still consider that to be a good trade. One of many that seems to result in a positive equity curve.
Interesting. I have position size at about #5 (or lower) on the list of things I worry about when entering a trade. I think there is a direct correlation between the position size one takes and how much confidence they have in their strategy.
I agree;
How do you come up with your position size?
I take the amount of capital I'm willing to risk and divide it by the dollar amount of my stop.
I risk the same percentage of my capital on each trade.
I guess it just depends on how good I'm feeling about that particular set-up. As long as I'm not nearing my BP limit I dont think about it much.
He turned 10k to 18mil in a year and a half (this was audited). Then allegedly he turned that 18mil to 42million in another 6 months (Not audited).