Normal
Money Management with a Rising Triangle : Ideally the Triangle should form over over 7 to 10 trading days .Around the later 2/3 thirds of the development is generally the ideal Entry.With LHG the Tri was confirmed on Mon 25 th Sept allowing a entry on Tues 26th --- Ave price ( the green line) say 2.77.From Entry 2.77 to Target 3.01 (real 2.99 ) we have potential profit of .22c , with the Rising Stop @ 2.56 a potentia loss of .21cSo our Potential Profit/Loss is odds of 1/1 , a even money bet .As the STOP risers our loss is diminishing whilst our profit is static.As from Fri --- barring a sudden price move, we are in a NIL risk position.As for the Stirrup Trade as the Thurs 28 Sept Open was the Entry we are now almost at the NIL risk area 2.86Tend to think a lot of new raders do not uderstand what the STOP is reresentingThe STOP is the size and odds of the BET.In the LHG example at the initial entry:Target = Winning = .20cLoss = Bet = .20cOdds = 1/1As you can see from the above that by lowering the STOP , you are only increasing the BET & Odds but not the Winnings --- your betting against yourself.Same principle applies with Tread Trading , as you place your STOP beaware of the potential Profit -- is the Bet size/Odds to large in relation to the potential Prize ?
Money Management with a Rising Triangle :
Ideally the Triangle should form over over 7 to 10 trading days .
Around the later 2/3 thirds of the development is generally the ideal Entry.
With LHG the Tri was confirmed on Mon 25 th Sept allowing a entry on Tues 26th --- Ave price ( the green line) say 2.77.
From Entry 2.77 to Target 3.01 (real 2.99 ) we have potential profit of .22c , with the Rising Stop @ 2.56 a potentia loss of .21c
So our Potential Profit/Loss is odds of 1/1 , a even money bet .
As the STOP risers our loss is diminishing whilst our profit is static.
As from Fri --- barring a sudden price move, we are in a NIL risk position.
As for the Stirrup Trade as the Thurs 28 Sept Open was the Entry we are now almost at the NIL risk area 2.86
Tend to think a lot of new raders do not uderstand what the STOP is reresenting
The STOP is the size and odds of the BET.
In the LHG example at the initial entry:
Target = Winning = .20c
Loss = Bet = .20c
Odds = 1/1
As you can see from the above that by lowering the STOP , you are only increasing the BET & Odds but not the Winnings --- your betting against yourself.
Same principle applies with Tread Trading , as you place your STOP beaware of the potential Profit -- is the Bet size/Odds to large in relation to the potential Prize ?
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