Comments on: Selling weak stocks and holding strong stocks

By: Bill

Bill — Thu, 04 Mar 2021 23:27:15 +0000

In reply to Julian Komar. is that 5% risk from your equity highs ?

By: Natxo baile

Natxo baile — Wed, 21 Oct 2020 06:25:51 +0000

Loving your blog and your book, great tips like this one. One of the most difficult thing in trading, let the wins runs and cut soon the losses.
I also use the rule of 2% risk on each stock and the maximum 6% risk of my portfolio for risk management, and I have found it simple and works.
For stopping out in weakness I used two rules mainly. I check for relevant volume zones under the price, it the price start to lose this areas I stop out. Also I use the 68% Fibonacci retracement, most of the times the volume zones and this Fibonacci are matching, and I have found that when correcting normally the price is rebounding in this level. If the price is going dipper than 68% Fibonacci retracement I stop out.

By: Susan

Susan — Wed, 03 Jun 2020 17:16:51 +0000

Some really great rules here. I need to work on reducing my average loss. I’m going to apply these rules to some of my past trades and run some simulations to see if these would be helpful. Thanks!

By: Julian Komar

Julian Komar — Sun, 03 May 2020 16:20:47 +0000

In reply to Silvano. Mostly I don't allow more than 5% portfolio risk. I never had the situation that all my positions got stopped out. I often sell them before they reach the stop loss point.

By: Silvano

Silvano — Wed, 22 Apr 2020 03:07:27 +0000

Hi
I tweeted you this question but you may not have seen it. I am interested in your overall portfolio risk. Say you are long 5 growth stocks with 2% risk on each on. If you have an unexpected volatility event and they all get stopped out then thats a 10% portfolio risk.
What is your maximum portfolio risk ?