Hi Ken,


How do you manage cheaper stocks entry? Is like 10.30 for long ok? Sometimes 0.30 is the whole rally for $10 stock.

You clearly said how tight the stops should be but can you specify approx how much % should I risk per trade compared to my whole capital. I mean like if I lost $50 on a trade how much % should this represent to my whole capital?


Best Regards,

Vitez

Hi Vitez, as I teach in my systems, I focus primarily on stocks in the $30-$70 range, though occasionally I will look for entries in higher priced ones like AAPL/RIMM/BIDU etc.

I don't look at trades compared to entire capital base (though some books/sites mention 2% max as a figure they use), I used fixed dollar amounts.

Thanks,

Ken

In overnight trading, Asian stocks have surged with biggest gains in nearly 3-month period. Drop in oil prices as well as JPMorgan Chase CEO’s comments on the easing of credit-market losses have pushed the banking and industrial stocks higher. i have short many of the asian stock yesterday and earned good spread.

Good to hear it! There's so much volatility in oil, energy, gold and commodities now there's plenty of trading opportunities. I just hope that traders don't sit on the sidelines during this superb trading market, as the overall 'sentiment' about anything is negative.. yet trading opportunities are terrific right now, as is usually the case.

-ken

Yea obviously.... but now the market of oil is slowly falling..... Only intra day should be preferred by the traders.

Cheers

Your last webinar, 10-17-08 you talked about 5 min candles. is this still on a 2 day chart?

If you are playing pivots/S&R then outside days shouldn't be as important, is that right?

And if it is true, are inside days preferred.

Also should the market correlate with the stock as far as S&R. What weight should we give the markets S&R compared to the stock, if they don't match up. (maybe just a speed bump?)

They lastly does the TRIN play as much importance in this equation?