Posted by stockmanmy > 2017-01-04 23:48 | Report Abuse

Excellent

Posted by stockmanmy > 2017-01-04 23:48 | Report Abuse

Any planning is better than no planning

Posted by Ming Jong Tey > 2017-01-05 09:28 | Report Abuse

@R3D3 Thanks for your input. I totally agree that execution is not easy. That's why it is essential to have a trading plan to cure the "what if" mindset. We can't predict what the market does but to only anticipate and react based on our trading plan. The idea is to take care of the downside with the stop loss.

Aas much as we can do to select the "right stocks", there is no guarantee and that's why a stop loss is important, as we do not want to have the mindset that "it can't happen to such a good stock".

The idea is we don't want 1 or 2 stocks to wipe out all our gain just because we are so confident in the technical/fundamental analysis so we trade without a stop-loss.

If we have continuously lost 5 out of 5 or even 10/10, then we will need to re-examine our method and also the market condition.

Like you mentioned, position sizing is only part of the story. There are other key factors like entry point, stop loss stock selection, etc...

Yes, once we have enough data for our trading expectancy based on different setup and quality, we can incorporate to vary our risk per trade.

Posted by ksng0307 > 2017-01-05 14:02 | Report Abuse

Please read Van K Tharp books for more. Is a must read book for investor

Posted by ksng0307 > 2017-01-10 23:47 | Report Abuse

another good read is alexander elder come into my trading room, read it and you will never regret