Entry : 4.40
Stop : 3.60
Target 8.00
Risk with stop loss = .80/share
Position size calculation :
Max allowable risk = .05% - 5% of account equity (dependent on risk tolerance)
1) No stop loss : entire position size = max risk / entry price (4.40)
2) With stop loss : position size = max risk / .80
Goal : get into risk-free or even better cost free position
Strategy : Sell 50% on doubles
Optional : Take some profit at first RLZ, and move stop loss to scratch or just above for a risk free trade at that point.
Stop : 3.60
Target 8.00
Risk with stop loss = .80/share
Position size calculation :
Max allowable risk = .05% - 5% of account equity (dependent on risk tolerance)
1) No stop loss : entire position size = max risk / entry price (4.40)
2) With stop loss : position size = max risk / .80
Goal : get into risk-free or even better cost free position
Strategy : Sell 50% on doubles
Optional : Take some profit at first RLZ, and move stop loss to scratch or just above for a risk free trade at that point.