David Sylvain

Posts Tagged 'peek a boutique'

Stock Market Analysis: 12/16/10

Strive to keep per trade loss as low as possible. While it is possible and one must everyday focus on finding them at same time keep on collecting small profits. Focus on dollar breakouts, they offer you opportunity to risk bigger per trade. But everyday look for opportunity where you can put in 25% or more of your capital in one idea. Look for opportunities to put bigger amount of capital per trade while managing risk. If large trades are not available then look for several small trades. Stop dreaming about doubling money in few trades (if that happens that is bonus, but you do not base your method on that). If your stop is very close to entry you can with just .25% or .50% risk put in sometime 60 to 70% of capital in one swing trade. Fine what next. To trade something like that you need to know which unique boutique to buy today, where to buy, how much to buy, where to put stop, where to exit and more importantly when to not trade this method then you can actually convert the structural edge. As a trader your first and most task is to find some structural phenomenon to build your edge around.

 

The kind of details to trade any structural edge are important for trader development s it helps you see “how it is done in real life profitably”. After that the real difficult task of actually making it work starts. It does not matter if you have lot of wash trades you close immediately if they do not work. He or she must find a market anomaly that has historically proven to work. A swing trader will not be able to match a good day traders profit unless they find very big EP kind swings and risk big. So let us say a day trader with 100k capital buys 1000 shares of 50 dollar stock and get out same day for 2 dollar profit , he has made 2000 dollars or 2% on his capital . Moreover, at 15 times earnings, a more appropriate valuation for a company with such earnings power, MRNA stock will be worth much more.