You are welcome! I'm Cristy, Markus's digital wingman/woman. Lol! Markus is hunting for beta listeners for his latest audiobook adventure, exploring the secrets of cultivating multiple income streams through trading and investing. Fancy getting your hands on a copy?
Okay, after I got over Tesla being at 550, this video trumps all the others I've watched on stop loss and risk. Thanks for sharing the notebook view - got a subscription here!!!
Yes, I strongly agree. The other ´market´ teachers sounded like they are reading from textbooks. He is genuine and honest, and he is not overly formal.
Hi Nomad Girl, glad it helped 😀. Make sure to subscribe to the channel so that you get a notification from UA-cam whenever I release a new video. This way you don't miss it. 😀👍
just want to say ive had trouble comin up with right stoploss, an more so that i didnt understand an never took time to dive end. i just use how much i want to risk based on how much of a man i felt like that day!!! lol but u freakin nailed it an i love this method or standard way idk, i know u said an explained where my scattered brained self could understand. can wait to put it to use.
Thank you for the video. Just want to share that if anyone wants to use ADR (as suggested in Power X Strategy) in TradingView here is the script to do it: ``` study(title="Average Daily Range", shorttitle="ADR", overlay=false) thishigh = security(tickerid, 'D', high) thislow = security(tickerid, 'D', low) length = 7 adr = sma(thishigh,length)-sma(thislow,length) plot(adr, color=red) ``` I modified the public library Average Daily Range by SuddenFX, and made it 7 days.
Hao, thank you very much for this! However, when I tried to add this script, I'm getting several error messages: Add to Chart operation failed, reason: line 6: Undeclared identifier 'tickerid'; line 7: Undeclared identifier 'tickerid'; line 9: Undeclared identifier 'thishigh'; line 9: Undeclared identifier 'thislow'; line 10: Undeclared identifier 'adr'; line 10: Undeclared identifier 'red' What am I doing wrong?
@Markus Heitkoetter , Maybe try replacing 'tickerid' with 'syminfo.tickerid'. I had to do that when using it in the strategy script. I'm not yet sure why that is the case tho.
Hi Markus, I have a question regarding stop losses for an Investment case. I am not currently trading (but I plan to in near future), but I have investments in certain stocks. How can I secure them, so if there is a correction going on, I get out of the deal? I would much appreciate if you can give some hint, or maybe even resources to look at. Thank you
Hi Bohdan, great question! I'm glad you asked 😀 Here's a video in which I explain the mechanics of placing a stop loss: ua-cam.com/video/fVJ0WMCRy_k/v-deo.html Take a look and let me know if this helps.
Hi Avi, what exactly do you mean? Yes, you would have to put up $3,120 in BUYING POWER. But you are not risking this amount. You would ONLY risk that amount if you think AAPL could go to zero. So I'm not sure I understand your question...
Thanks for all the wonderful videos Markus! A newbie question.... does the average daily range scenario within the 2% rule also apply to Swing Trading?
Would you apply the same 2% rule for options? Therefore, a conditional order would be entry price and exit=entry-ATR7. The question would be determining number of contracts. Thus, 16 TSLA would not even make equal to 1 option contract. Thank you
When buying calls and puts, I would definitely apply the 2% rule to options. But keep in mind: It's 2% of your account! So if you have a $25,000 account, you would risk 2% of $25,000 = $500. So you need to buy an option that's less than $5 (since each option represents 100 shares). If the price of the option is above $5, then you need to make sure that you never RISK more than $5. Example: The option is trading at $8, so you would have to exit if it goes down to $3. Is this making sense?
I use profit targets suggested by PXO However the mkt turns before price its or black bar appears & I end up losing All the profits...EX. EQT- ANY TIPS?
Hi Donna, these questions are better asked in the private Facebook VIP Group: facebook.com/groups/rockwelltradingvip/ Also, are you using conservative and optimized exits, as we recommend?
Can I use ADR on tradingview’s sevbaite? And when I input the stock I want to evaluate I am not seeing the ATR in the right hand side of the graph. Any help on why I am doing wrong would be appreciated
Hi Joseph, yes, you can use the ADR. That's close enough and won't change the results too drastically. And it's tough to say what you're doing wrong in your settings without seeing your screen! Have you already contacted TradingView's support team? Maybe you can include a screenshot and they are able to help?
Hey Marcus, great video as usual. One thing though; you are using One ATR as your stop loss but in your book (Power X strategy) you use 1.5 ADRs as the stop. I assumed the ATR is bigger than the ADR but as far as I can see they are the same. Or maybe you have just used one ATR in the video to simply things and just focus on the concept? Regards, David H
Based on the most recent testing and research, we use BOTH: 1x ADR and the optimized ADR, which is usually between 1 and 3. That's the power of PowerX Optimizer: Finding the BEST stop loss and profit target based on the stock's "personality".
sorry, I didn't see that you already asked this question that I posted above, but am not clear on the rules for this either. Getting guidance from Markus will help us tremendously.
Hi there! I don't understand why and how you are applying the 2% of $10,000 ($200) rule to the Tesla example of 4 stocks at $550 which would only be $2,200. 2% of $2,200. is only $44. not $200. Please explain. Thank you,
Hi Rico, if you have a $10,000 account, then you should risk 2% of the account on a trade. In this example, TSLA. Right now (July 17, 2020), the average daily range (ADR) of Tesla is $100. So if you place your stop loss at 1 * ADR = $100, you should only trade 2 shares. Otherwise, you would risk more than 2%. That's why it makes more sense to trade stocks that are cheaper when you have a smaller account, e.g. FB, AAPL, MSFT, WMT, etc. Does this help? 👍
@@rockwelltradingservices Hi Markus, Thanks for your reply. I have 23 shares of Tesla and just put a Trailing Stop sell of 3% on it today to protect my gains, as it is a fluctuating stock. Does that make sense? I do not hold you liable for any info you give me. It is all my doing. Thanks,
If you choose a trailing stop over a fixed stop loss, you should consider trailing it along a moving average. Common settings are 7 and 21. Just some ideas 👍
Hey Markus!! Great content here ! I think risk management is the most important for new traders maybe you can do an expanded show to cover it in greater details
Great content and teaching Markus! Would you be able to do a continuation with a few stocks on how we should try to establish a profit target that could be reasonable hit (2x risk?) based on ATR as well Is there a best approach to establish a profit factor quickly of whether we should attempt the trade or not? Thank you!
Hi Steven, I like to have 2 profit targets: A conservative one (which is 2x the stop loss) and then a more aggressive one, which could be 4x the stop loss. I usually sell 1/2 of my shares at the conservative target, move the stop loss to break even and then see if I can hit the more aggressive target. This way, I'm getting the best or both worlds. Is this making sense?
@@rockwelltradingservices Thank you very much Markus. One interesting insight is that I took my trading rules and through several long hours into late evening, I went through simulating a back test of 23 stocks using 3 different triggers for stop loss. I did some reading from Van Tharp on R Multiples to make sure I understand. I found that my indicators that signaled to get in were not the best for getting out (1:1.80 R Multiple Average - 13 W / 10 L for a Sum of 41.11 R ). I have used a straight 8% rule based on what I read from CANSLIM, and I noticed that the R Multiple was nearly the same on my indicators (1:1.82 R Multiple Average that had more wins (18 W / 5 L) for a Sum of 41.83 R). When I went through again using ATR from this posting that you suggested, I was able to see dramatically that my result enhanced. Interesting that my W / L was the same as my indicator, but the results were different (1:3.57 R Multiple Average - 13 W / 10 L with a Sum of 82.18 R). I would have never thought to test in this away and examine an approach from ATR if you hadn't mentioned it. I was surely convinced initially the 8% was going to win out as it "gave wiggle room", but the risk to reward greatly diminished by blindly applying universally as a standard rule. As you said in your example, each stock daily (average) true range needs to be considered. I started to see what you have been talking about. If the trade goes against you, so what, get out and take -1 R loss which is minimal - live to trade another day, and win back where the stock makes those significant gains. I hope this helps someone as it has greatly helped me! Thank you Sir!
Hey Markus, I'm a bit confused. On your coffee with Markus, your tastyworks account plan has a 2% rule with a $20k account size. You calculate how many stocks you can buy by diving stock price by $400. but according to this video, your going by 7 day avg. Why the difference? And also, how do you set a Stop Loss / Profit Target for Options?
HI Shahmeer, in the TastyWorks account in am trading OPTIONS. So I'm calculating how many OPTIONS I can trade. THIS video shows you how to do it for stocks. Does this help?
Please enlighten me about this formula that you are using. Let's say that I have 350k in my account and I will only risk 2% or 7,000....using TSLA as your example and the ATR is $45 then I could purchase 155 shares($45 divided into $7000) for a grand total of $85k...is that right or am I missing something? The purchase seems pretty expensive. Thanks!
Hi Ron, your calculations are correct. And I recommend that you only have 5-8 positions in your account. So an $85,000 position on a $350,000 account is very doable - ESPECIALLY if you have a margin account. If you want to trade more than 5-8 positions in your account, you should reduce the risk per trade to 1%. Does this help?
What if ATR is in decimal on dividing the Amount to risk it gives an overwhelming number of shares....Example ATR 0.1245 and amount to risk is $200(2% of my Capital) ....number of share is 1606(share price $15) which is more than my Capital.... How do I fix this?
In my experience if the ADR/ATR is so small that you have a HUGE position size risking 2%, the stock is trending that nicely. This would be one reason to pass. But if the position size doesn't make sense for the portfolio I would pass...OR consider trading an option instead.
Good advice, but it doesn't matter. The big firms that run everything faster than you can consider anything have algorithms that will find and hunt out your stops, calculating exactly how much stop hunting will profit the most. They do this before we even see price updates, let alone get orders filled. Billions are spent on technology to gain just a few milliseconds.
Yes, and these "few milliseconds" are designed to front-run your order by $0.01 - $0.02, and NOT to hunt for your stop losses. The idea of these "algo traders" (as you call them) is to step in front of you. So if you want to buy a stock at $15, they would buy it at $14.98 and then sell it to you for $15. But they do not try to figure out how YOU calculate your stop loss. Does this make sense? 😀
Bad example. TSLA is $550/share. Based on your position size of $200, I could not buy Tesla. I have to find a cheaper stock, that is within/less than my position size of $200. Could not buy AAPL either.
Hi Ed, please take another look at the video: The stop loss is based on the ADR, and NOT the share price. You're thinking "position size", and I'm talking about a stop loss here.
Well, there's different way to calculate a stop loss. Of course, you can set it a support or resistance levels. Or at Fibonacci levels. Or at a moving average. Or you can use a percentage amount. There's no right or wrong - just different ways to do it. Making sense? 😀👍
@@rockwelltradingservices I got my education that came directly from a hedge fund and was taught it's based on the chart, and never an arbitrary number or percentage like you say.
Thsnks a million for your assistance. I now understood how yo use ATR in stop loss.
You are welcome! I'm Cristy, Markus's digital wingman/woman. Lol!
Markus is hunting for beta listeners for his latest audiobook adventure, exploring the secrets of cultivating multiple income streams through trading and investing.
Fancy getting your hands on a copy?
Markus im beginner trader however I learn a lot of your videos. Thanks!
Awesome! Did you check my playlist? I could recommend you get started here ua-cam.com/video/XMD5kJ62D5U/v-deo.html
Superb explanation
Hi Ajhar, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Okay, after I got over Tesla being at 550, this video trumps all the others I've watched on stop loss and risk. Thanks for sharing the notebook view - got a subscription here!!!
Hi Robert, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Thanks
super helpful! thank you
I am glad that this helps. ;)
Amazing!
Than you! ;) What do you like about this video?
WOW.,,, I am new trading of any kind, and no one has never mention anything like this before. Thank you Mr. Markus
I am glad that this helps! :)
This is much more simpler than doing a projected ATR. Thank you, great explanation.
You are welcome! 😉
Thanks Markus, this was a real eye-opener on money management.
Hi David Foo, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
I'm a new investor and these simple breakdowns are so helpful. Thanks for the video!
Thanks! I appreciated the feedback. Glad it helped. 😀👍
Yes, I strongly agree. The other ´market´ teachers sounded like they are reading from textbooks. He is genuine and honest, and he is not overly formal.
Very important risk mitigation rules....thanks
Thank you for watching!
Fabulous !
Hi Blackdiamond, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Excellent stuff Markus. Btw, do you recommend a similar approach for most cryptos? Thanks!
Should've found this video earlier!! But later is better than never. Thank you!
Hi Nomad Girl, glad it helped 😀. Make sure to subscribe to the channel so that you get a notification from UA-cam whenever I release a new video. This way you don't miss it. 😀👍
Excellent logic Sir . I will surely use it .
That is awesome! :)
Great info. :-)
Awesome! Thank you for watching! :)
just want to say ive had trouble comin up with right stoploss, an more so that i didnt understand an never took time to dive end. i just use how much i want to risk based on how much of a man i felt like that day!!! lol but u freakin nailed it an i love this method or standard way idk, i know u said an explained where my scattered brained self could understand. can wait to put it to use.
Awesome! ;) Thank you for watching.
Great explanation, so simple. Thank you
You are welcome! I am glad that this helps. :)
Pleasant, well educational and profitable explanation, Thank you.
You are welcome. Thank you for watching and leaving a comment. :)
how to set stop loss in lot position ?
Thank you so much for this great explanation, Zaid from Saudi Arabia
Hi Zaid, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Which chart do you usr
I like to use TradingView and PowerX Optimizer.
Thank you so much for this video, you explained it very simple and made it make sense. Subscribed and will be watching all your videos !
Hi Plamena Andreeva, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Good info!
I hope this helps! :)
How can I roll a loosing vertical? Should I roll it? I'm loosing on DOCU short put vertical and it will exp on sep 18.
Great explanation, pleasant tone and look . Keep on
Thank you! :)
Do you need to set a range for the average daily range? Is 20 days good, and do you think this applies to crypto? Thank you! Natalie
☝️
I like the software you're using for this video. What is it?
You can go to mytradingroutine.com to check it out.
excellent video, thx
You are welcome! :)
Thank you for the video. Just want to share that if anyone wants to use ADR (as suggested in Power X Strategy) in TradingView here is the script to do it:
```
study(title="Average Daily Range", shorttitle="ADR", overlay=false)
thishigh = security(tickerid, 'D', high)
thislow = security(tickerid, 'D', low)
length = 7
adr = sma(thishigh,length)-sma(thislow,length)
plot(adr, color=red)
```
I modified the public library Average Daily Range by SuddenFX, and made it 7 days.
Hao, thank you very much for this! However, when I tried to add this script, I'm getting several error messages:
Add to Chart operation failed, reason: line 6: Undeclared identifier 'tickerid';
line 7: Undeclared identifier 'tickerid';
line 9: Undeclared identifier 'thishigh';
line 9: Undeclared identifier 'thislow';
line 10: Undeclared identifier 'adr';
line 10: Undeclared identifier 'red'
What am I doing wrong?
@Markus Heitkoetter ,
Maybe try replacing 'tickerid' with 'syminfo.tickerid'. I had to do that when using it in the strategy script. I'm not yet sure why that is the case tho.
That worked.
Here's the edited script - just in case you want it:
study(title="Average Daily Range", shorttitle="ADR", overlay=false)
thishigh = security(syminfo.tickerid, 'D', high)
thislow = security(syminfo.tickerid, 'D', low)
length = 7
adr = sma(thishigh,length)-sma(thislow,length)
plot(adr, color=color.red)
THANKS! 😀
Thank you for all your information. Do you have a good rule of thumb for calculating a stop loss and profit target for options trading?
☝️
Hi Markus, I have a question regarding stop losses for an Investment case. I am not currently trading (but I plan to in near future), but I have investments in certain stocks. How can I secure them, so if there is a correction going on, I get out of the deal?
I would much appreciate if you can give some hint, or maybe even resources to look at. Thank you
Hi Bohdan, great question! I'm glad you asked 😀
Here's a video in which I explain the mechanics of placing a stop loss:
ua-cam.com/video/fVJ0WMCRy_k/v-deo.html
Take a look and let me know if this helps.
hey markus. if aapl is 260$ multiplication by 16 shares is 3120$.am i right?
Hi Avi, what exactly do you mean? Yes, you would have to put up $3,120 in BUYING POWER. But you are not risking this amount. You would ONLY risk that amount if you think AAPL could go to zero.
So I'm not sure I understand your question...
Thank you for the info. Can you make a video showing us how to plan or calculate an exit?
YES! Will do. Thanks for the input. Stay tuned.... and subscribe to the channel so that you don't miss the next vide0. 👍
Thanks for all the wonderful videos Markus! A newbie question.... does the average daily range scenario within the 2% rule also apply to Swing Trading?
Never mind. I watched the video again and hear where you actually mentioned Swing Trading. 😳
😀👍
does this also apply when daytrading penny stocks?
Why would you day trade penny stocks? Sorry, I can't help you with that. I'm swing trading stocks > $5 and options on these stocks.
Would you apply the same 2% rule for options? Therefore, a conditional order would be entry price and exit=entry-ATR7. The question would be determining number of contracts. Thus, 16 TSLA would not even make equal to 1 option contract.
Thank you
When buying calls and puts, I would definitely apply the 2% rule to options. But keep in mind: It's 2% of your account! So if you have a $25,000 account, you would risk 2% of $25,000 = $500. So you need to buy an option that's less than $5 (since each option represents 100 shares). If the price of the option is above $5, then you need to make sure that you never RISK more than $5.
Example: The option is trading at $8, so you would have to exit if it goes down to $3.
Is this making sense?
I use profit targets suggested by PXO However the mkt turns before price its or black bar appears & I end up losing All the profits...EX. EQT- ANY TIPS?
Hi Donna, these questions are better asked in the private Facebook VIP Group: facebook.com/groups/rockwelltradingvip/
Also, are you using conservative and optimized exits, as we recommend?
Can I use ADR on tradingview’s sevbaite?
And when I input the stock I want to evaluate I am not seeing the ATR in the right hand side of the graph. Any help on why I am doing wrong would be appreciated
Hi Joseph, yes, you can use the ADR. That's close enough and won't change the results too drastically. And it's tough to say what you're doing wrong in your settings without seeing your screen!
Have you already contacted TradingView's support team?
Maybe you can include a screenshot and they are able to help?
Hey Marcus, great video as usual. One thing though; you are using One ATR as your stop loss but in your book (Power X strategy) you use 1.5 ADRs as the stop. I assumed the ATR is bigger than the ADR but as far as I can see they are the same. Or maybe you have just used one ATR in the video to simply things and just focus on the concept?
Regards,
David H
Based on the most recent testing and research, we use BOTH: 1x ADR and the optimized ADR, which is usually between 1 and 3. That's the power of PowerX Optimizer: Finding the BEST stop loss and profit target based on the stock's "personality".
Great video, Marcus! I want to ask is it right way to use ATR(7) to calculate Take Profit also? Shoul it be multiplied on any number? Thank you
sorry, I didn't see that you already asked this question that I posted above, but am not clear on the rules for this either. Getting guidance from Markus will help us tremendously.
Hi there! I don't understand why and how you are applying the 2% of $10,000 ($200) rule to the Tesla example of 4 stocks at $550 which would only be $2,200. 2% of $2,200. is only $44. not $200. Please explain. Thank you,
Hi Rico, if you have a $10,000 account, then you should risk 2% of the account on a trade. In this example, TSLA.
Right now (July 17, 2020), the average daily range (ADR) of Tesla is $100.
So if you place your stop loss at 1 * ADR = $100, you should only trade 2 shares. Otherwise, you would risk more than 2%.
That's why it makes more sense to trade stocks that are cheaper when you have a smaller account, e.g. FB, AAPL, MSFT, WMT, etc.
Does this help? 👍
@@rockwelltradingservices Hi Markus, Thanks for your reply. I have 23 shares of Tesla and just put a Trailing Stop sell of 3% on it today to protect my gains, as it is a fluctuating stock. Does that make sense? I do not hold you liable for any info you give me. It is all my doing. Thanks,
If you choose a trailing stop over a fixed stop loss, you should consider trailing it along a moving average. Common settings are 7 and 21. Just some ideas 👍
Hey Markus!! Great content here ! I think risk management is the most important for new traders maybe you can do an expanded show to cover it in greater details
This is noted. Thank you!
I understand the consent but how do you put it into practice
If you want to learn more you can attend my online class here www.rockwelltrading.com/free/trading-options-101/
Great content and teaching Markus! Would you be able to do a continuation with a few stocks on how we should try to establish a profit target that could be reasonable hit (2x risk?) based on ATR as well Is there a best approach to establish a profit factor quickly of whether we should attempt the trade or not? Thank you!
Hi Steven, I like to have 2 profit targets: A conservative one (which is 2x the stop loss) and then a more aggressive one, which could be 4x the stop loss. I usually sell 1/2 of my shares at the conservative target, move the stop loss to break even and then see if I can hit the more aggressive target. This way, I'm getting the best or both worlds. Is this making sense?
@@rockwelltradingservices Thank you very much Markus. One interesting insight is that I took my trading rules and through several long hours into late evening, I went through simulating a back test of 23 stocks using 3 different triggers for stop loss. I did some reading from Van Tharp on R Multiples to make sure I understand. I found that my indicators that signaled to get in were not the best for getting out (1:1.80 R Multiple Average - 13 W / 10 L for a Sum of 41.11 R ). I have used a straight 8% rule based on what I read from CANSLIM, and I noticed that the R Multiple was nearly the same on my indicators (1:1.82 R Multiple Average that had more wins (18 W / 5 L) for a Sum of 41.83 R). When I went through again using ATR from this posting that you suggested, I was able to see dramatically that my result enhanced. Interesting that my W / L was the same as my indicator, but the results were different (1:3.57 R Multiple Average - 13 W / 10 L with a Sum of 82.18 R). I would have never thought to test in this away and examine an approach from ATR if you hadn't mentioned it. I was surely convinced initially the 8% was going to win out as it "gave wiggle room", but the risk to reward greatly diminished by blindly applying universally as a standard rule. As you said in your example, each stock daily (average) true range needs to be considered. I started to see what you have been talking about. If the trade goes against you, so what, get out and take -1 R loss which is minimal - live to trade another day, and win back where the stock makes those significant gains. I hope this helps someone as it has greatly helped me! Thank you Sir!
@@rockwelltradingservices Thank you Markus. I am going to do some testing around this. Extremely helpful!
I am glad that is clear now. 😊
@@rockwelltradingservices When you say move stop loss to break even, do you mean double it?
Hey Markus, I'm a bit confused. On your coffee with Markus, your tastyworks account plan has a 2% rule with a $20k account size.
You calculate how many stocks you can buy by diving stock price by $400. but according to this video, your going by 7 day avg. Why the difference?
And also, how do you set a Stop Loss / Profit Target for Options?
HI Shahmeer, in the TastyWorks account in am trading OPTIONS. So I'm calculating how many OPTIONS I can trade. THIS video shows you how to do it for stocks. Does this help?
Please enlighten me about this formula that you are using. Let's say that I have 350k in my account and I will only risk 2% or 7,000....using TSLA as your example and the ATR is $45 then I could purchase 155 shares($45 divided into $7000) for a grand total of $85k...is that right or am I missing something? The purchase seems pretty expensive. Thanks!
Hi Ron, your calculations are correct. And I recommend that you only have 5-8 positions in your account. So an $85,000 position on a $350,000 account is very doable - ESPECIALLY if you have a margin account.
If you want to trade more than 5-8 positions in your account, you should reduce the risk per trade to 1%.
Does this help?
@@rockwelltradingservices Thank you so much for your information. Makes perfect sense!
What if ATR is in decimal on dividing the Amount to risk it gives an overwhelming number of shares....Example ATR 0.1245 and amount to risk is $200(2% of my Capital) ....number of share is 1606(share price $15) which is more than my Capital.... How do I fix this?
In my experience if the ADR/ATR is so small that you have a HUGE position size risking 2%, the stock is trending that nicely. This would be one reason to pass. But if the position size doesn't make sense for the portfolio I would pass...OR consider trading an option instead.
Good advice, but it doesn't matter. The big firms that run everything faster than you can consider anything have algorithms that will find and hunt out your stops, calculating exactly how much stop hunting will profit the most. They do this before we even see price updates, let alone get orders filled. Billions are spent on technology to gain just a few milliseconds.
Yes, and these "few milliseconds" are designed to front-run your order by $0.01 - $0.02, and NOT to hunt for your stop losses. The idea of these "algo traders" (as you call them) is to step in front of you. So if you want to buy a stock at $15, they would buy it at $14.98 and then sell it to you for $15. But they do not try to figure out how YOU calculate your stop loss. Does this make sense? 😀
Pretty sure if you lose 2% 10 times in a row it's not $2000, try compounding ,, but over all great video thank
You are welcome! I hope that this helps.
maybe too late for a answer, but with the culculation the card should be 30 min, 1 hour or day
why don`t you use percentage for stop/loss
You can use a percentage. Up to you. For me, a stop loss based on the ADR works best. 👍
Bad example. TSLA is $550/share. Based on your position size of $200, I could not buy Tesla. I have to find a cheaper stock, that is within/less than my position size of $200. Could not buy AAPL either.
Hi Ed, please take another look at the video: The stop loss is based on the ADR, and NOT the share price. You're thinking "position size", and I'm talking about a stop loss here.
A troll disliked the video lol.
LOL - maybe he liked it and just clicked on DISLIKE by accident. Who knows? 😜
Haven't watched full video - had to stop and cringe when you said TSLA was at 550 😒 if only I had gotten interested in trading sooner
LOL - Yes, those were the days...
you're in luck! it's less than 450 now
Sorry but this info is totally wrong!
Your stop loss is based on the chart its never based on an arbitrary number or a percentage amount.
Well, there's different way to calculate a stop loss. Of course, you can set it a support or resistance levels. Or at Fibonacci levels. Or at a moving average. Or you can use a percentage amount. There's no right or wrong - just different ways to do it. Making sense? 😀👍
@@rockwelltradingservices
I got my education that came directly from a hedge fund and was taught it's based on the chart, and never an arbitrary number or percentage like you say.
Great explanation, so simple. Thank you very much
I am glad that this helps.
Thanks