whats your usual volume on a 100+ dollar stock like SKF if you don't mind me asking?....depends on its price movements??
Position sizing depends on a lot of variables.. To simplify it the task is to fix as many as possible... It is possible to experience the same risk in any stock regardless of entry quality by adjusting size... My goal in trading is to fix the entry variable which allows freedom in the others... I used to know a guy that traded unbelievably well day in day out without using stops due to excellent entry quality, sometimes even against trends as he didn't short much. SKF had gapped up huge and dropped WELL past it's daily range into support.. UYG was up against it's prior support of low 18's... so the SKF trade was quite large at 750 shares for a 67k account. Usually 250 to 400 is it for stocks over $100...