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To: davealex who wrote (269)	10/4/2000 8:15:23 PM
From: Threei	Respond to of 8925

Dave, Even further, some find the stop FIRST using TA, then decide how many shares they can take based on that risk using an acceptable percentage of account size for a loss. Let me add one more approach: Some find the stop, then decide how many shares they can take based on execution/slippage risk evaluated by stock liquidity, then decide on entry point so that loss would not be higher than their risk tolerance. To make it simple: If stock has support at 20 which is defined as stop level, 1000 shares is traded and risk tolerance is $250 per trade, than entry point is not higher than 20 1/4. Vadym