How Much Are You Risking On Each of Your Bets?

[murray t turtle]

Just so's it's clear, risk 7or 8% of what?

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OK, say you have 7 ETFs, like QQQ.
Risk 7% or 8% on each one, to make 24 % /but never buy all those ETFs @ same time or same sector.............................................................................
Actually IBD formulae is for single stocks which is proven, but more risky/rewarding FOR single stocks.[In other words could lose 7x7=49% in 7 single stocks, but they get round that, by not buying all 7 single stocks in on day.......] And really, he never taught automatic profits @ 24%, so it tends to be more than 24% or less.

 

[easymon1]

%%
OK, say you have 7 ETFs, like QQQ.
Risk 7% or 8% on each one, to make 24 % /but never buy all those ETFs @ same time or same sector.............................................................................
Actually IBD formulae is for single stocks which is proven, but more risky/rewarding FOR single stocks.[In other words could lose 7x7=49% in 7 single stocks, but they get round that, by not buying all 7 single stocks in on day.......] And really, he never taught automatic profits @ 24%, so it tends to be more than 24% or less.

Risk 7% or 8% Of Product Price or Account Value?

 

[murray t turtle]

Risk 7% or 8% Of Product Price or Account Value?

%%
7% or 8%PP/product price.
Sometimes less; one time i saw SDOW got in a trading range, it doesnt make 24% in one week often anyway/so cut sdow @a 4% loss.

 

[easymon1]

%%
7% or 8%PP/product price.
Sometimes less; one time i saw SDOW got in a trading range, it doesnt make 24% in one week often anyway/so cut sdow @a 4% loss.

with a 7% to 8% 'Stop Spread'
do you limit account/portfolio allocated to any specific trade?
eg. # shares @ 25% of Portfolio per Trade, calculated based on Stop Spread value?

I don't trade options but, How would the following look for an Option Trade instead of a Stock trade?
How many shares to Trade:

Current Close Price STOCK: 100.00
Stop Price 92.00
Stop Spread 8

Portfolio $ Size $100,000
2% Risk $2,000
25% of Portfolio $25,000

# Shares @ 2% risk 250
Cost of Shares @ 2% risk $25,000

# shares @ 25% of Portfolio per Trade 250

Lesser of #Shares vs 25% 250
# Shares to Trade (Round Down) 0
Cost of # Shares to Trade $0

 

[murray t turtle]

with a 7% to 8% 'Stop Spread'
do you limit account/portfolio allocated to any specific trade?
eg. # shares @ 25% of Portfolio per Trade, calculated based on Stop Spread value?

I don't trade options but, How would the following look for an Option Trade instead of a Stock trade?
How many shares to Trade:

Current Close Price STOCK: 100.00
Stop Price 92.00
Stop Spread 8

Portfolio $ Size $100,000
2% Risk $2,000
25% of Portfolio $25,000

# Shares @ 2% risk 250
Cost of Shares @ 2% risk $25,000

# shares @ 25% of Portfolio per Trade 250

Lesser of #Shares vs 25% 250
# Shares to Trade (Round Down) 0
Cost of # Shares to Trade $0

%%
I stopped trading options also/not enough profit/to big a bid ask spread.
3rd Friday week is a good marker, except in etfs/time is your friend

 

[xavierchisolm]

I usually take 5-10% position sizes and until now, I have made some good profits.