#4 Key to Trading Longevity: Position Sizing | Getting Started with Stock Investing | 6-28-24

Getting Started with Stock Investing | Connie Hill, CMT | 6-28-24
This is the 4th lesson in this series. It's important to a trader to manage your emotions and your risk. Not that a trader wants to lose money however, taking losses is part of the trading and investing arena. In this webcast you will learn a formula you can use to help manage your risk in any trade or any portfolio. The formula is: Portfolio Risk / Position Risk
This interactive webcast is specifically geared to introduce the new stock investor to the world of growth, value, or income investing. Watch live as your education coach demonstrates how to use the thinkorswim and Schwab platforms to illustrate some of the processes investors might undertake as they work to build a diversified stock portfolio.
0923-31BC
Follow me on X (twitter): ConnieHillCS
Playlist For Getting Started With Stock Investing: studio.youtube...
Previous Webcasts:
#3 Determining Entry Signals
#2 Finding Stocks Based on Sector Rotation: ruclips.net/user/li...
#1 Start Here For Market Basics: • #1 Learn Market Vocabu...
#6 Part 2 Top Down Analysis For Growth Stocks: ruclips.net/user/li...
7# Key Take Aways From Stocks Trading Course: ruclips.net/user/li...
Bonus: Can You Spot a Potential Momentum Change? ruclips.net/user/li...
#6 Quickly Find Stocks in Recently Performing Sectors: ruclips.net/user/li...
#5 Know When to Exit When You Buy a Stock: ruclips.net/user/li...
#4 How Much to Buy: ruclips.net/user/li...
Scripts discussed today (not guaranteed for accuracy)
1 Month: tos.mx/!zQCiZj2V
3 Month: tos.mx/!nsTx7zAL
6 Month: tos.mx/!p7j90TIb
Link to candlesticks in thinkorswim Learning Center: tlc.thinkorswi...
Scripts are for educational purposes only, are not a recommendation, and are not guaranteed for time or accuracy.
#ConnieHillCS #SchwabCoaching #thinkorswim #TraderTalks #whatstocktobuy #RiskManagement #ExitSignals #PlanninganExit #stoplosses #stops #topdown #topdownanalysis

[@sjsphotog]

Thanks for the class Connie.. Keep up the good work

[@tradertalkswebcasts]

You're so welcome! Thanks for writing in. ^CH

[@barbarashultz4567]

Thank you

[@tradertalkswebcasts]

You're welcome. Thanks for writing.

[@sjsphotog]

Connor in your example you slow you can buy 1000 shares of the stock but the price of that example was $30/share so that's $30,000 which is NOT only 2% of a $100,000 portfolio, that's 30% !! Please advise since the portfolio risk was set to be a max of only $2000.

[@tradertalkswebcasts]

Hey there. Risk is how much you are willing to lose on the trade, not spend. Spending $30k doesn't mean you are willing to let it go to zero value. That's why we calculate Portfolio risk ($750) and divide that by Trade risk (Entry price - Stop price) to see how many shares to buy. In your case if you are willing to risk 2,000 per trade divide the Trade risk (Let's say its $4) and your stock was $68 a share. 2000/4=500 shares. 500*68=34,000. That may be too much for your portfolio to handle so maybe risk 1,000 instead. ^CH

[@sjsphotog]

Over request for ToS programmers: why not let us adjust the stop price after we drag and drop to adjust the stop just like we can adjust the price when entering the trade? This would make it so much easier for all of us who can't ever get the mouse to go exactly to the price we want it to when moving up the stop on the chart. Please and thank you.

[@tradertalkswebcasts]

Hi sjsphotog. When you do the drag and drop stop loss from the chart, there is an edit box you can use to fine tune the price in case it didn't stop as close to the number you wanted. I just accepted the "close to" number in the webcast, but by hitting edit you can change any of the variables. ^CH

[@barbarashultz4567]

Cahold is on what chart? Close above low of the week? It looks likes you have a 1 month chart open with the BFH and used the candle from the day before.

[@tradertalkswebcasts]

Hi Barbara. In this case we are using daily charts so we look for the candle that went the lowest in the pullback and see if the stock closes above the high of that low day. So on Friday, we were looking at Thursday's candle which was the lowest. It's high was 43.36 so we looked for the stock to close above that which it did to give a CAHOLD entry that some like to use. ^CH

[@sjsphotog]

Check out classes by James Boyd. My He uses CAHOLD dots on the chart to see them easily with a script.