%% OK, say you have 7 ETFs, like QQQ. Risk 7% or 8% on each one, to make 24 % /but never buy all those ETFs @ same time or same sector............................................................................. Actually IBD formulae is for single stocks which is proven, but more risky/rewarding FOR single stocks.[In other words could lose 7x7=49% in 7 single stocks, but they get round that, by not buying all 7 single stocks in on day.......] And really, he never taught automatic profits @ 24%, so it tends to be more than 24% or less.
%% 7% or 8%PP/product price. Sometimes less; one time i saw SDOW got in a trading range, it doesnt make 24% in one week often anyway/so cut sdow @a 4% loss.
with a 7% to 8% 'Stop Spread' do you limit account/portfolio allocated to any specific trade? eg. # shares @ 25% of Portfolio per Trade, calculated based on Stop Spread value? I don't trade options but, How would the following look for an Option Trade instead of a Stock trade? How many shares to Trade: Current Close Price STOCK: 100.00 Stop Price 92.00 Stop Spread 8 Portfolio $ Size $100,000 2% Risk $2,000 25% of Portfolio $25,000 # Shares @ 2% risk 250 Cost of Shares @ 2% risk $25,000 # shares @ 25% of Portfolio per Trade 250 Lesser of #Shares vs 25% 250 # Shares to Trade (Round Down) 0 Cost of # Shares to Trade $0
%% I stopped trading options also/not enough profit/to big a bid ask spread. 3rd Friday week is a good marker, except in etfs/time is your friend