You need to go into a trade with an idea of how you are going to manage it and size accordingly. One thing Hari said a few weeks ago that has really stuck with me was that you need to either be nimble or patient in this market, but not both. This applies to sizing as well. If you go into a trade intending to swing it and size down, you will lose almost all your trades when they move slightly against you and die a death by a thousand paper cuts. At the same time, if you go into a trade intending to catch a smaller move and size up, you cant afford to be patient with it because of how you sized. That trade you put on intending to make $100 turns into a 4-figure loss that you are bagholding because you got patient with a trade you needed to be nimble on. Stocks like OXY and CELH today both great examples of fantastic setups that you can be more patient with because of how strong their daily charts are. Right now we don’t have the market helping us in either direction so focusing on the daily chart is a must to have a good trade setup. Stocks that are at 52-week highs and lows are great candidates because they are very strong/weak vs SPY which right now is nowhere near its 52 week high or low.
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