money management

Discussion in 'Risk Management' started by zxcv1fu, Jan 23, 2002.

  1. zxcv1fu


    What is the best way to make sure I do not let my loss ride?

    Do I place a $0.25 market stop immediately after my order execution in Arca?
  2. If I wasn't able to watch a trade second by second (normally during bathroom breaks), I would set a stop limit order with some wiggle room between the activation price and the limit price. The wiggle room would depend on the stock I was trading. For example, if trading SUNW .05 wiggle room would be sufficient, wheras EBAY would require .10. Normally I get filled closer to the activation price than to the limit price.
    I use IB and their BEST order route.
  3. vikana

    vikana Moderator

    there is no one universal answer. You have to look at which time frame you trade and what profit target you have.

    I have found that 2 to 3 times the average (hi-lo) of the most recent bars (in your timeframe) to be a good value that won't get you stopped out based on minor wiggles. Take partial profits at one times risk.
  4. zxcv1fu


    I am putting a trailing market stop order right after the execution today. Works great for intraday trading.