re: xhosa Bullsheet - as much as it is normal for stocks to...

re: xhosa Bullsheet - as much as it is normal for stocks to retrace back to their 13 and 26 week ema in an uptrend there is another side to this - and that is that if you chase a stock and buy far above these points and place a stop loss at say a 26 week ema level - then you may be breaking or maybe do not have good money management rules? This may mean that when you are stopped out that you have lost too high a percentage of your portfolio?

Once you are far in profit you can maybe give it more room to move - but on entry I would suggest on ALL stocks a tight stop at a level so that you only lose 1% of your entire portfolio value (some people use 2%).

That is the other side to this - if it is normal for a stock to retrace to such levels then if you chase it far above such levels the risks are higher. I like to buy at such a level and not have a rush of blood and chase it or buy on a high volume breakout a stock that has been consolidating in a trading range - or on first pullback thereafter if it runs too hard and I miss it.

A really excellent book is Alexander Elders " Trading For A Living" - excellent for money management and other details. Discusses the relationship to price, position sizing and your portfolio size so that you can calculate an entry price and a maximum number of shares that you may buy at that price based on your stop loss point on the chart and your overall portfolio size and the maximum percent you risk. Not cheap - but worth every cent - buy it!