With a day trade I'll set about a 2% mental stop in case the stock doesn't take right off to stop out quick and go to the next one. Most off the big runners go fairly quickly at least a few % then I trail it up. I never set a mental at an even number like $3. If $3 was 2% loss I'd use say $2.97 Same with .50 increments with under $5 stocks.
I find the risk/reward ratio to be good using around 2% initial stop as quite a few of these if they take off can give me 10%+ pretty quickly.
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7 comments:
Hi Muddy,I just listened your interview at traderinterviews.com.It was excellent. Can you discuss how you manage the trade after you enter?
Thanks,Ron
Thanks.
With a day trade I'll set about a 2% mental stop in case the stock doesn't take right off to stop out quick and go to the next one.
Most off the big runners go fairly quickly at least a few % then I trail it up.
I never set a mental at an even number like $3.
If $3 was 2% loss I'd use say $2.97
Same with .50 increments with under $5 stocks.
I find the risk/reward ratio to be good using around 2% initial stop as quite a few of these if they take off can give me 10%+ pretty quickly.
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