Hello,
I calculate the R/W ratio for the initial entry for long position like this:
(entry price- stop price)/(target price - entry price).
My question to you is:
If you add more shares for the same stock, how do you recalculate the R/W ratio? Do you treat them as a totally different position and calculate the ratio separately without considering the existing shares?
Also do want to share any guideline on when to increase/reduce positions?
Thanks a lot in advance!
Andrew
I calculate the R/W ratio for the initial entry for long position like this:
(entry price- stop price)/(target price - entry price).
My question to you is:
If you add more shares for the same stock, how do you recalculate the R/W ratio? Do you treat them as a totally different position and calculate the ratio separately without considering the existing shares?
Also do want to share any guideline on when to increase/reduce positions?
Thanks a lot in advance!
Andrew