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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: David R. Evans who wrote (8938)	11/20/1998 5:03:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

Well kiss the bride, may there always be sugar on her strawberries. Many ways to attack money management but your idea of system is best. It is a matter of risk avoidance but first the trader must know himself. Webb said small %s didn't work with low priced stocks, I wish he would have explained that. We might have seen what he expected. A stock is selling for $5, using 10% you set sell point at 4.50, or at 8% 4.62. if a stock turns in the opposite direction of the trade, why would you want to stay with it? The fear of taking a loss is the traders worst sin. When that takes over, we begin to deal on hope. If capital allows then breaking up total to 10 amounts, saying no more than 10% of capital will be risked on any one stock. you could lose a 100% on that stock, and not loose more than 10%. Now when you apply a 10% stop from buy point, you loose a max of 1% of total capital. Too conservative? might be that is where knowing yourself is important. When you lower risk, you lower returns. A side comment: when I hear that someone brought on fundamentals. I always wonder how they did that. I have never seen in my 30+ years of the market, a fundamental indicator that gave an entry or exit. Doesn't sound like it makes any sense to me. Why would anyone do that? Price, volume and time that makes sense.