Hi Pat, new member here. I have been going through multiple videos. I have a question that I posted on the twitter feed earlier today. My question is regarding the management for subsequent adds. I understand how the risk is clearly managed for the first buy (50% of the position). Below the line is bad and above the line is good :) But when you buy the next 2 lots (30% and 20%) the price will be 3 and 5% away from your original price. So, the initial pivot point as a reference for your sell decision on these 2 lots becomes too far away, right? How do we manage these additional positions? Thank you.
1 Answers
Hi Shiva,
Pat made this video for you:
https://youtu.be/WjW-K8ClnhE
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Thanks Pat for explaining. It makes perfect sense to manage every buy tightly (regular or add-on) from its buy-point.