charting....who cares, page-3

Hi seventhvawe

Broadly speaking re position sizing.

I allocate my position size according to what I percieve to be the risk on any one trade.

So for example I might put on a larger position on a trade for a midcap with good fundamentals than I would on a speccy explorer.

At the same time I usually split up my position buy into 2 or 3 bites - rather than the one buy.

This works for me in a couple of ways.

If the trade goes against me (but still within my stop) I might decide to average down with a second buy.

If the trade goes my way then I am likely to pyramid up near the close of the day with a second buy.

There are various suggestions as to what a reasonable % of your trading capital goes on one trade but I must admit I tend to wing it a bit here and use intuition within reason.

Having learned a lot of 'rules' in the past I now feel comfortable enough to break those rules when my instinct tells me it's ok.

Cheers