/biz/ - Business & Finance

>>50364516
You should largely aim for consistency in $ risk
If you are risking $100 on one trade, and then $500 on another, then $2000 on another; you could win 2 of the 3 trades and still be down massively because the one trade you lost was the one in which you risked $2000
The only way you can have consistency of $ risk is if you understand how to calculate risk.
Entry Price - Stop Loss price = Risk amount per share x Number of shares taken
If your entry is $76.25 and your stop is at $74.75, you are risking $1.50 per share, so if your trade plan says you can take $300 of risk per trade, you can only go with 200 shares.
Likewise for another trade you might have an entry of $1.50 and a stop at $1.30, which is 20 cents of risk per share, so in that case you could take 1500 shares and be risking $300
(of course you'll have to factor in slippage).

>>50339730
And that's why I slap them on there

>>50262091
>>50262221
Saucing you up

>>50242213