Allocation:
OK a few words on allocation. Does this describe your trading patterns?
Take a position at 40 bucks, stop out at 38, chase it to 42, stop out again at 39 etc,,,
Here is what I do: Let's say your orignal allotment is 400 shares. Rather than take a position of 400 stock X@40, buy 1-200 X at 40. Mkt goes to 38 and starts back, add another 1-200. OK lets say it goes up to 42, reassess the situation. Do you add at 42, maybe? What is the story, what is the volume, what were your original intentions, (building a position or just a swing trade), what is NAZ doing, what are the peers in the sector doing? Answers to these questions can help you determine your positions.
Next topic, stops.... |
