I had been holding off on Twitter because I thought it was going to be a distraction. I’ll have to check it out.

I noticed our analysis just turned neutral from strong bearish. What do you think?

http://www.traderbots.com/stocks/Stocks.aspx

It does. I have cut out all the excessive reading and unnecessary research and went back to basics. What a relief as I was clouding my mind with too much junk. It’s tough keeping up this blog – that’s why I am more active on twitter.

I’m about to have my 1st kid in September and I was curious to find out if being a dad makes you more focused as a trader?

With 80k and an average stop of 10%, yes, you will have positions averaging $10-$12k each. A tweak up or down with the stop will increase or decrease the position size. A 2% risk will allow positions to reach the $20k area depending on the stop.

The problem does arise when you have multiple candidates to buy. So, you enter the best and keep them unless a better opportunity comes along. There’s only so much money in an account and risk one can handle. You could leverage yourself but I wouldn’t recommend that in this market.

Hope this helps: see the simple position sizing spreadsheet if you haven’t already:
http://www.chrisperruna.com/wp-content/calcs/position_size_with_stops.xls

Before the market crash i would go in 20k-30k with an 80k account per trade via canslim, and just hold it for a few days for that breakout bang, and when the market was good, this worked out wonderfully; i could just replace my batch of stocks every 1-2 days and replace them with new ones and do the same thing over and over.

However, with more market uncertainty i think it would make more sense for me to do what you do, as well as the original canslim method from the more aggressive style i was going with.

I read your post about position sizing, for example risking 1-2% of total capital with 7-8% stop per trade (sometimes less, depending on trade)

However, my question is, if i was to do this, each of my position would be about $11,000 investment per trade.

so say i did my research and filtering, and came up with 7 good stocks to trade and i entered into them now, that would mean that from now to maybe 2-3 months from now, i wont have any money to enter any other stock, and i could not exit out of my existing stocks because i need them to run their course (unless something dramatic happens)so even if better market condition and stocks showed up during this time, i will not be able to do anything about them.

Have you ever ran into this problem?

Anyway, would love to hear your thought on this.

-kind regards
mike

Keep up the great stuff.

Jay
@marketfolly