Robert Wehmeyer asked 7 years ago
Pat Walker Staff answered 7 years ago
The following is my approach… (this is a recap of what we talked about via Twitter on 12/22)
Following is much of what I do. Very Risk Averse. Was sole provider for family of 6. So had to be risk averse. In addition, no other source of income besides investing profits. I do NOT daytrade.
Pyramiding: I hardly ever buy full lot at pivot. I buy 1/2. Goes up just a buy 30%. Up a bit, 20%. If it does not go up, I do NOT add to the position. This also keeps losses smaller.
I want VOLUME CONFIRMATION on 30 min or hourly charts. If not there, I am hesitant to buy.
If you go thru the Key list and study the charts, you can see the PRECISE entry points on the chart. This is what I stress; it is good above that price and bad below that price. Could I buy something and sell it half hours later? Yes. I LIMIT LOSSES
The win-loss ratio is probably 3 or 4 to 1 winners vs. losers. Perhaps more. Average gain can be from 10% to 30% or higher. I have doubles in there. I am really BIG on riding trends. Average loss is .5% to 3%.
So, keep losses VERY small. 1 - 2% or less. Example: I don't want to lose more than $3 - 5 on GOOGL or AMZN. Percentage wise, it is nothing. On a stock like ROKU, might be $1.50 or 2.9%
I do NOT give my stocks 5 -7 loss. Note SXC; I'm limiting losses at 11.50. 2.1% loss. I keep losses VERY small. I focus on stocks that push away VERY quickly from purchase. If not, I sell to close.
Sincerely
Pat
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