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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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