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Damn stops got me today, I dabbled in a short position today with ROKU, stop was set at $122.98 and it f'ing triggered and never smelled it again all day. It was my first shot at shorting so I was experimenting to get confidence in the trading methods. Should have been a nice gainer but I only dabbled in 100 shares and only lost $92. Win some you lose some, trying to play both sides now on stocks I follow heavily to make some cash here and there. Don't have Tri money though lol.
Man I hate getting stopped out. It's like the market knows exactly how to screw you over and then dips or runs JUST enough to trigger your stop!!

I've largely quit using stops simply because I could never master it...I just have to sit and watch like a hawk any trade I need that level of protection on....
 

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Missed another chance to unload TSLA at $1019. Man did it bounce hard off that price again. But its holding up "OK" I guess. If it does manage to break thru $1019 then it should run quite a bit higher.
 

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New position in UBX.

In at $9.00, risk/profit target +/- $1.60.
Size = 1,250 shares per 100k. Risk 2%.

(1,250 * 1.6 = 2,000 so 2% max risk)

Screenshot_20200618-104257.png
 
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So let me see if I'm getting the standards right here:

If you bought 1250 shrs per 100k, and if you had a $1M portfolio that would be 12,500 shares. At $9/share that's $112,500 or about 11% of your portfolio?

Do I have it correct?
 

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Correct, 11% as of today.

At $10.60 I'll sell half and raise my stop to $9.

Conversely, at $7.40 I'd cut my losses entirely for a 2% hit.

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Tri, you initially planned on 800 shares of Tesla through end of today,

You made $36k in 24 hours, but then changed your plan and holding out for $1020+?

Yikes, you might need some depends at this rate.


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I'd like to revisit LA's post here because it's a really good one IMHO. And I have a technique I have used to temper my thinking and help me be more objective.

Here's how it goes:

First, this assumes you are following prudent rules of investing. Things like "No positions that are larger than 10-15% of your portfolio. If you are one of these idiots who has put his/her entire 401k into Tesla, I cant help you.

Next - this assumes the positions you do have are in reasonably large cap, well known, well traded stocks. Penny stocks, esoteric holding companies, and similar arent valid here.

Last - the rule of never investing money you cant afford to lose applies. VERY important.

With that in mind, let's use my $750,000 trade in Tesla as an example...

As the amounts of money you work with rise, so can your emotions. And that's never your friend. Dealing with that effect is key.

For me, as long as I've followed the rules, I just divide the amounts by 10 until I'm working with a few hundred dollars.

So let's consider Larry AZ's post that way...

You made a $750 investment and you've made $36. Do you sell, or hold out for more? In that context, $36 doesn't seem as big a deal. It allows you to look more objectively at things.

Conversely - if you invested $750 and LOST $36, you'd have $714 left. Also not too scary and probably recoverable.

Now that's a GROSS oversimplification of investing obviously. But it's one piece of the puzzle that I hope some of you might find useful as your nest egg grows....

-=TT=-
 

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And also...who the fuck is trading 1/100th of a damn PENNY on a thousand dollar stock? This shit irks me for some reason...

 

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One more thing that can be useful:

If you see your recent purchase going into the red...check the overall market index most reflective of your stock (NAS for tech stocks, S&P for general stocks etc).

If your stock is down 2% but the overall market is also down 2% then dont freak out - your stock is just following the market. But if the market is up 2% and you are down 2 or 3%, you need to figure out why.

This whole pandemic things was awful for the overall market. But some stocks like airlines and cruise lines took a complete beatdown while stocks like Zoom, Netflix, biotech, and Amazon/delivery stocks did well.

So when the coronavirus situation Outlook improves, some of my stocks go up...but Netflix and Amazon sometimes move contrary to the market as they are beneficiaries of the pandemic to an extent.

There ya have it - know if your stocks move with the market or against and make sure you know why they do that. Once you do, you can generally devise a better decision on what to buy/sell/add/or trim as conditions around is change....
 

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So let me see if I'm getting the standards right here:

If you bought 1250 shrs per 100k, and if you had a $1M portfolio that would be 12,500 shares. At $9/share that's $112,500 or about 11% of your portfolio?

Do I have it correct?
Coming back to this. So, you may be thinking 11% on some no-name stock is excessive, and it is pretty much my max, but keep in mind that (barring gaps, which do happen) my max risk is 2%. The position size is only a function of share price and range, and range is determined by volatility. The risk is the real position size.

Let's take another recent example, that hopefully will hit my profit target today.

Bought GAN on 6/15, pretty sure I posted it above.

In at $21.00, risk/profit target +/- $4.75.
Size = 420 shares per 100k. Risk 2%.

(420 * 4.75 = 1,995 so 2% max risk)

(420 * 21 = 9,975 so roughly 10% of my portfolio)

If GAN hits my target of 21 + 4.75 today I'll sell half my shares, so 5% of my portfolio, with a stop at 21. House money at that point.

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Follow-up to the follow-up...

I also adjust my stops as a stock hits new closing highs. Somewhat 1 to 1 until the profit target, then about 0.75 to 1 after that to widen.

So GAN example again. Started at 21 +/- 4.75. My initial stop was $16.25 representing a -2% hit to the portfolio. Yesterday's close was at 24.63, my stop is now around 19.88. Max loss 420 * 1.12 = 470 or about -0.5% to the portfolio.

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Lion....I didnt think it was rash or I'll advised or anything. But it's not a name most are familiar with and it's a low volume turnover. So I thought it might be insightful to better understand your process, metrics, and thinking. No worries - preach!
 

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Profit taken on GAN at $25.75.

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Anyone got insight into witching/options expiration today? Might be some wild swings last half of the day...
 

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Market taking a dump on news that Apple is re-closing stores it had re-opened in some states like FL and AZ.
 

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I'm glad I'm all cash right now in my trading account. Missed the ROKU boat and its held nicely during the market dump, but I don't think I want to hold any bags over the weekend. I may miss a Monday morning gap up overnight but I'm sensing another gap down myself. I thought about chasing UAL for a swing trade but I'm glad I didn't, looks like its going to pull back and fill that $35 gap. Who knows, everything could gap up at 3:50 today for weekend hold gamblers.

I also thought about dabbling in Macys again for a quick swing but it has since tanked even further.
 

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I'm 51.6% cash at the moment.

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Discussion Starter #2,959 (Edited)
A few buyers starting to come in. Still a lot of time left on the clock tho.


And.....here comes witching hour!!
 
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